a. Stage 4.

By considering this to be inappropriate deduction because it could violate the tax laws demonstrates my
concern for following the law, and hence influence my decision to encompass society as a whole. Laws are
important expression of societal values and that one should abide by the laws.
b. Stage 6. Here my reasoning adheres to inner conscience because tax laws did not contemplate circumstances
such as that one in which the purpose of the buyback was to get rid of an officer-shareholder whose decision
were harmful to profitability of the company. So my act is in accordance with integrity and justice and reflects a
belief that laws do not have to be complied if justice so demands.
c. Stage 1. The risk of punishment takes precedence in this case, and my decision to claim this deduction is based
on my own self-interest, and the self concern for punishment, and the decision is not concerned with the right
thing or following the law.