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1. What ethical issue is at stake?

The ethical issue deals with accurate reporting of the photocopy machines. Buchanan wants to reduce the lease liability by claiming that the copiers are not worth the bargain price.

2. Should the controller’s argument be accepted if she does not really know much about copier technology?

The controller’s argument should not be accepted if she does not know much about copier technology. If one is considering her argument, one should find more proof of Buchanan’s claim before proceeding.

3. Would it make a difference if the controller were knowledgeable about the rate of change in copier technology?

It would make a better argument if the controller were knowledgeable about the rate of change in copier technology. Buchanan would be much more credible in this instance.

4. What should Suffolk do?

Suffolk should look into how rapidly copier machine technology advances since Buchanan admittedly is not knowledgeable about them. If he wants to decrease the lease liability he should proceed in this manner. If he believes Buchanan to be wrong, he should ignore her suggestion and report the copiers as a finance lease.