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