You are a staff accountant with Munson-Libra Industries, a multinational company that manufactured and sold orthopedic devices.After the fiscal year-end, you are working with the controller to prepare the geographic disclosures.Yesterday you presented the controller with the following summary information:

($ in millions)

Domestic Libya Egypt France Cayman Total

Islands

Revenues $845 $222$265$343$2,311$3,986

Operating Income 145 768821642972

Assets 1,005 301 290 38 2851,919

Today, you find the following memo on your desk:Great job!Let's combine the data like this:

Revenue $845 $487 $2,654 $3,986

Operating Income 145 164 663 972

Assets 1,005 591 323 1,919

Because of political instability in North Africa, let's not disclose specific countries.In addition, we restructured most of our French sales and some of our U.S. sales to occur through our offices in the Cayman Islands.This allows us to avoid paying higher taxes in those countries.The Cayman Islands has a 0% corporate income tax rate.We don't want to highlight our ability to shift profits to avoid taxes.

1.Analyze the ethical dilemma presented above by using the Analytical Model for Ethical Decisions. Determine the facts of the situation (the who, what, where, when, and how).

2.Identify the ethical issue and the stakeholders.

3.Identify the values related to the situation.

4.Specify the alternative courses of action.

5.Evaluate the courses of action in terms of their consistency with the values identified in step 3.

6.Identify the consequences of each possible course of action.

7.Make your decision