Problem 2 (25 Points) Related Parties You are a manager with Hodges Jones & Sylvia (the Firm) and a member of the Firm's audit team for the audit of Bravo Corporation (the Company). One hundred percent of the outstanding common stock of Bravo Corporation is owned by Roger Jones, the Company's CEO. Mr. Jones also owns one hundred percent of the outstanding membership interest of Tango LLC (the LLC), which owns and leases office and equipment storage facilities to Bravo Corporation. During the planning and risk assessment process for the Firm's audit of the Company's financial statements as of and for the year ended December 31, 2022, management has identified, and your audit procedures have confirmed the following related party transactions. 1. During the year ended December 31, 2022, the Company paid the LLC $5,000 per month in rents in connection with the Company's utilization of office space and equipment rental space. As of December 31, 2022, the Company owed LLC $5,000 for its December rent. This amount was paid in full on January 15, 2023. The CFO of Bravo believes that the $5,000 per month is a market rental rate. The rents paid are material to the financial statements of Bravo Corporation. 2. CEO Roger Jones was paid a salary of $10,000 per month for a total of $120,000 for the calendar year 2022. This salary was paid on a twice monthly basis and included all required withholdings of federal and state taxes. For purposes of this problem, assume that the salary is material to the financial statements of Bravo Corporation. 3. Mr. Jones wife, Rita Jones, is a CPA and owns her own CPA firm, which she operates as a sole proprietorship. As a convenience for the Company, Rita Jones has drafted the Company's financial statements of Bravo Company. Rita Jones did not charge the Company any fee for this service. Hodges Jones & Sylvia would charge $25,000 for these services, which is material to the financial statements of Bravo Corporation. 4. As of December 31, 2022, Roger Jones had loaned the Company $100,000 on a short-term basis. This outstanding loan bears interest at 6% per year. The loan is documented in writing and has a stated maturity date of July 31, 2023. The loan is unsecured and is material to the financial statements of Bravo Corporation. Required: Based on the preceding information and by reference to ASC 850 (see FASB Basic View Link in Canvas Announcements), draft the Company's related party disclosure note that will be included in the Company's 2022 financial statements. For purposes of this problem, assume that Tango LLC meets the requirements for VIE analysis (and potential for consolidation) under the provisions of ASC 810-10-15-17AB, by which the LLC is not required to be consolidated with the Company.