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Nye reported this audit finding to Rene Selma, the newly appointed controller of CE. A few days later Selma called Nye for his advice on what to do. Selma started her conversation by asking, “Can”t we eliminate the negative income effect of our pension dilemma simply by terminating the employment of nonvested employees before the end of our fiscal year?” Instructions How should Nye respond to Selma”s remark about firing nonvested employees?
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