Assume that young female executive received the $4,000 diamond ring from the company CEO who was also the majority shareholder in the company. Assume that the two have made several trips together on behalf of the company. There is no information about romance between the two officials.

 

You are called to make an ethical decision/recommendation whether the female executive should include. The $4,000 in her adjusted income; whether the company can deduct the $4,000 as a business expenses? Discuss all ethical choices, consider all stakeholders.