An attestation engagement is one in which a CPA is engaged to

• provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.

• issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.

• assemble pro forma financial statements based on the representations of the entity's management without expressing any assurance.

• testifyasanexpertwitnessinaccounting,auditing,ortaxmatters,givencertainstipulatedfacts.

25

On January 2, year 4, Raft Corp. discovered that it had incorrectly expensed a $210,000 machine purchased on January 2, year 1. Raft estimated the machines original useful life to be 10 years and its salvage value at $10,000. Raft uses the straight-line method of depreciation and is subject to a 30% tax rate. In its December 31, year 4 financial statements, what amount should Raft report as a prior period adjustment?

• $102,900

• $165,900

• $168,000

• $105,000