Introduction You are an experienced staff accountant working on the audit of RB Johnson Electric Company (the Company) as of and for the year ended December 31, 2022. All of the outstanding common stock of the Company is owned by Barry and Sam Johnson, who are brothers. The Company is engaged in commercial electrical construction on the East Coast of the United States. The Company was formed on January 1,1947 , and has been in continuous operation since that date. The Company employs approximately 100 people and has normal revenues between $25 and \$35 million. The Company's bonding needs and its line of credit agreement, with Truist, require the financial statements to be audited. The Company has a very good Chief Financial Officer, who was at one time a manager with your firm. Your firm has audited the financial statements for the last 10 years. Adam Silvia is the engagement partner and Joey Sykes is the engagement manager. Based on some staffing issues, you have effectively been assigned the role of engagement senior on this client and you are excited to be working with Joey and having a number of increased responsibilities. The audit has been completed and you and Joey are getting ready to transmit the completed file to Adam for his review. The Company uses the accrual method of accounting and recognizes revenue on the percentage completion method of accounting. The Company's recent adoption of ASC 606 did not materially impact the Company's revenue recognition. The Company's trial balance, as of and for the year ended December 31, 2022, follows. Problem 8 (Related Party Disclosures) The Company's CFO has drafted the following related party note for the Company's 2022 financial statements, which are presented, for comparative purposes, with the Company's 2021 financial statements. The CFO has asked you to review the note and offer him any comments that you might have. The Company rents certain equipment storage facilities from a limited liability company (the LLC) controlled by the Company's CEO and his immediate family. During the year ended December 31, 2022, the Company paid the LLC $60,000 in rents. As of December 31, 2022, the Company owed the LLC $15,000 in rents for the months of October, November, and December. These unpaid rents are included in the Company's accounts payable balance on December 31, 2022. In the opinion of the management of the Company, $5,000 per month in rent is fair market rental for the property. In addition, during 2022 the Company paid the CEO's wife a salary of $125,000 for her services as the Company's in-house legal counsel. Required By reference to the appropriate professional standard, describe comments, if any, that you may have for the Company's CFO regarding this