This essay declares that the major ethical issue in this case is whether Dravid Luis will be doing or not doing what Jimmy Westfield wants regarding the documentation of the worth of the equipment which is at $3,500,000 following its net realizable value. …
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According to the paper the number of estimates that he has obtained seems to be a little low considering that worth of the equipment that is being evaluated amounts to millions of dollars. Or he can consult another accountant regarding alternative options that may be offered to Jimmy Westfield to settle their difference in evaluating the worth of the equipment.
As the discussion stresses utilitarianism is basically the greatest happiness principle which holds that actions are right in proportion as they tend to promote happiness or pleasure and wrong if they tend to produce pain. However, it is important to note that there are two kinds of utilitarianism- act utilitarianism and rule utilitarianism. In act utilitarianism the consequence of the act should produce the greatest happiness to the greatest number of people while rule utilitarianism means that we should act so that the rules governing our action produce the greatest happiness for the greatest number of people. With utilitarianism as the ethical framework, we now analyze Dravid Luis’ going along with Jimmy Westfield’s desire to record the equipment at net realizable value.
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