d.Should Peterson Accounting have relied on the income statement and footnote information provided by Ms. Martinez's accountant?Why or why not?

CARSON'S INN INCOME STATEMENT For the years ended December 31, 2004 2003 2002 Rental Revenue $892,513 $796,500 $759,656 Other Revenues (note 1) 212,432 183,195 171,923 Total Revenues $1,104,945 $979,695 $931,579 Cost of Revenue (note 2) 441,978 41 1,472 419,21 1 Gross Prot $662,967 $568,223 $512,368 Marketing 110,495 97,970 93,158 General and Administrative (note 3) 287,286 254,721 242,211 Operating Income $265,187 $215,533 $177,000 Notes to Income Statement Note 1: Other Revenues Other revenues consist of charges to guests for charges for other goods and services. Note 2: Cost of Revenue Cost of revenue includes all payroll related costs of employees; depreciation on the property, improvements, and furniture; linen service charges; utilities; and bed taxes. Depreciation in cost of revenue 2004 2003 2002 Building (40 year life, Straight line) $50,000 $50,000 $50,000 Property Improvements (various) 72,000 68,500 65,000 Furniture (5 year life, Straight line) 88,000 82,000 82,000 Note 3: General and Administrative Expenses General and administrative expenses do not include a salary for S. Rivera, the owner of the hotel, since this is a sole proprietorship and not a corporation. Ms. Rivera took drawings of $75,000 in 2004; $72,000 in 2003; and $70,000 in 2002 in addition to the expenses listed above. These amounts approximate what a manager would be paid. General and administrative expenses also include depreciation on equipment of $22,000 in 2004; $23,000 in 2003, and $27,000 in 2002