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jonny [76]
3 years ago
14

A cpa firm performs the annual audit of the leahy group, a private company. the client has asked the firm to perform a study to

determine whether the company would qualify for certain municipal tax credits and prepare the request. the firm will receive 15 percent of any tax credits that leahy obtains for the client as a result of the request but no fees if the request is denied. city officials do not perform a substantive review of each request for tax credits. would this fee arrangement be permitted under the aicpa code of professional conduct?
Business
1 answer:
nikitadnepr [17]3 years ago
7 0
No, this is not permitted under the AICPA Code of Conduct. The fee of the firm would have based<span> solely on the success of their task. Under the Code, it is allowed to received payment based on the work they have done but it is not the sole basis for its payment. In this situation, there is no agreed payment except for the success of their task so there will be an opportunity of fraud for the firm here in order to receive the fee. To compensate this problem, the Code did not allow this type of payment terms (the fee is based solely in the success of the tax credits they may earn).</span>
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lidiya [134]

Answer:

d) $100,000

Explanation:

In answer to this question, Tricia must include $100000 as the amount of the discharge of indebtedness from the disposition of her principal residence when when she is completing her Schedule CA for the year 2019.

We have option d, 100000 dollars as the answer because the ​amount of debt forgiven is known to be taxable.

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3 years ago
On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 to Twenties, Inc. On September 1,
atroni [7]

Answer:

$2,000

Explanation:

Revenue is the income generated from normal business activities. This includes allowances, discounts and deductions for sales returned.

Since Boogie and Twenties modify the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair, it means that revenue to be recognized from the date of the change will be recognized at a unit price of $10.

As such if Boogie delivers 200 pairs of shoes in September,

Revenue to be recognized in the Month of September

= 200 * $10

= $2,000

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3 years ago
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spen
lutik1710 [3]

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$50? ($150 is not the correct answer)

Explanation:

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Romashka [77]

Answer:

Gardening gloves

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In the context, Helga owns and runs a online business. She has a website where she sells online houseplants. There are various houseplants available on her site from where people can buy it and get it delivered to their house.

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