A controller is preparing the companys income statement at year end. He notes that the company lost a considerable sum on the sel of some equipment it has decided to replace. Since the company has sold equipment routinely in the past., the Controller knows the losses cannot be reported as extroardinary. He also does not want to hightlihgt it as a matieral loss, since he feels that will reflect poorly on him and the company. He reasons that if the company had recorded more depreciation during the assetss lives, the losses would not be so great. Since depreciations is included among the companys operating expenses he wantto report the losses along with the companys expense, where he hopes it will not be noticed. What are the ethical issues involved? What should he do? Why?