Please read each case carefully, and analyze the facts. Then, describe the problem in writing, and propose a solution involving the various concepts and procedures learned in class. Please provide your answers in the space provided under each question. Your answers should be concise (i.e., between 4-8 sentences).

1. Thomas Pepper is a successful CPA. His biggest client is Jeff Silver. Jeff is a highly successful entrepreneur with several businesses. Mr. Pepper handles all of Mr. Silvers taxes, audits, and personal and business finances. Mr. Silvers companies include Nile Corp., an online merchandiser. Mr. Silver wants the Nile Corp. to grow much faster and larger. He has retained the Wall Street investment banking firm of the Bulwark Investment Group to begin the process of preparing the firm for a public offering, as a way of raising funds for an IPO. One important concern is a long-term lease that the Nile Corp. has with a major commercial real estate company, REA Corp. The terms of the lease include a rental payment of 3% of gross revenue from Nile Corp. There are 29 more years left to the end of the lease. Mr. Silver does not want to disclose the terms of the lease to the Bulwark Investment Group. How should Mr. Pepper advise Mr. Silver? Mr. Pepper wants to help Mr. Silver have a successful IPO, while also enhancing the future profitability of the Nile Corp. What business advise can Mr. Pepper offer Mr. Silver? How should the 29-year lease commitment be reported, if at all? Please discuss and answer these questions.