We have now covered the two most influential theories of ethics:  Utilitarianism and Deontology.  We have also examined the implications of these theories in the context of the economic system. The question is: What form of economic system is ethically justified? Now consider the following case: John Smith is a farmer who lives in South Texas. He owns a 60-acre orange grove (which is average size for a small family farm of this type). Every season, John needs to hire laborers to help harvest the oranges. Each year John hires undocumented workers, most of who are from Mexico, to assist with the harvest. He pays these workers by the basket, but finds that on average they are paid about 25% below the federal minimum wage. Furthermore, John knows that if he can even find enough American citizens willing to do this work, he would have to pay them far above the minimum wage to do it. For this reason, John continues to employ the undocumented workers every season, despite the fact that this is illegal. Notice that John has not engaged in any fraud or coercion when he employs the undocumented workers. As long as John wishes to bring these foreign workers onto his land, and as long as the workers come willingly, no fraud or coercion is involved. Furthermore, as long as the workers are willing to work for the lower wages that John pays them, no fraud or coercion has occurred. Therefore, this is a legitimate transaction according to free-market principles. In other words, if you endorse a free-market capitalist economic system, then you are committed to the view that the government should not prevent John from doing this. ((( For the assignment, please provide a response to the following questions: )) 1) Do you believe it is ethical for John to employ the undocumented workers? Why or why not? (You should make reference to one or more of the ethical theories to help justify your answer.) 2) Do you believe a free-market capitalist economy is an ethical economic system? Why or why not? 3) Is your view about a free-market capitalist economic system consistent with your view about John’s practice of hiring undocumented workers? (In other words, if you endorse a free-market capitalist economic system, do you also endorse John’s practice? OR If you do not endorse a free-market capitalist economic system, do you also not endorse John’s practice?) If your views are not consistent, how do you explain the discrepancy?

Davy Jones needs to file taxes for his business and provides the following information.Using your Tax Guide, you determine you’re going to be required to prepare a 1040 Schedule C Profit or Loss form a Business and 1040 Schedule SE Self Employment Tax for Jones’ Sole Proprietorship.Davy Jones’ Nautical Tours is owned and operated as a Sole proprietorship by David K. Jones (SSN 000-00-0000)Principal Business or Professional Activity Code; 114110Principal business; Charter fishing toursEmployer Identification Number 867530950Business address 1008 North Harbor Drive San Diego, CA 92103 Home address8700 Lake Murray Blvd #2San Diego, 92119 The cash accounting method is utilized Jones did materially participate in the operation of the business The business started January 1st, 2012Wages consist of $25,000 paid to one employee and $15,000 to anotherDepreciation expense; Jones owns a fishing boat, The Jolly Roger, which he purchased for $850,000. The depreciation on the income statement is book depreciation and will differ from what is actually used on Line 13 Depreciation of form 1040 Schedule C. The boat is depreciated using the Modified Accelerated Cost Recovery System (MACRS), half year convention, is in its 4th year of service and the 10-year recovery period is used. Utilize Publication 946 How to Depreciate Property to calculate the correct depreciation amount to enter on the 1040 Schedule C. Locate Table A1 in the Appendix to calculate the tax-deductible depreciation. Interest expense is interest paid on the loan for the boatInsurance payments were made to cover liability for guests and for the boatPayroll taxes; Federal Insurance Contributions Act (FICA); Social Security and Medicare payments made on the behalf of employeesFederal Insurance Contributions Act (FUTA) made on behalf of employeesTravel was purely for business purposesParking fines are tickets Jones received for parking illegallyLease expense was paid to Honda Motors for his mother’s car lease, who is not involved in the business in any wayDavy Jones’ Nautical Tours 2016 Income Statement Revenue $ 400,950.00 Wages $ 40,000.00 FICA $ 3,060.00 FUTA $ 85.00 Depreciation $ 85,000.00 Interest $ 43,900.00 Advertising $ 6,350.00 Supplies $ 23,795.00 Legal fees $ 6,940.00 Insurance $ 26,700.00 Boat slip rental $ 33,010.00 Travel $ 6,250.00 Office expense $ 7,940.00 Parking fines $ 1,350.00 Lease expense $ 3,650.00 Net Profit $ 112,920.00 Assignment GuidelinesTo prepare the Sole Proprietorship’s tax return, complete the following steps: Ensure that you have Adobe Reader installed on your computer to open and use the downloadable IRS forms. Go to the IRS Web site and download the fill-in tax forms that you will need to complete. Complete all necessary downloaded fill-in forms on the computer and save. Save the completed forms as PDFs and upload for grading. You may not utilize Tax preparation software to complete this assignment! This constitutes cheating! Save the completed forms as PDFs and upload for grading; double check your PDFs to ensure data was retained when they were uploaded to Submitted Assignments; blank forms will yield 0 points!You will be required to fill out and submit the following forms: 1040 Schedule C – Profit or Loss from Business (Sole Proprietorship) 1040 Schedule SE – Self Employment Tax