The first eleven questions are modified from Nurnberg and Schaefer (2010) pages 326-327. Please spend half an hour to thoughtfully read pages 325-327 of Nurnberg and Schaefer (2010). The focus of the assignment is on related-partytransactions (RPT), on which there were a few multiple-choice questions in chapter 10.

5. What is the appropriate entity for assessing the reasonableness of Technology Properties income distribution and profitability?

6. What advice would you provide the negotiating parties about considering Technology Properties income statement in their discussions?

7. Why might Dr. Sophisticate insist on only considering the income statement of Modern Cardiology?

8. What advice would you give Dr. Nave prior to renewing the partnership agreement?

9. What other pertinent information would you need to assess the reasonableness of the income distribution and profitability of the two companies?

10. From an ethical perspective, should the senior partners make Technology Properties income statement available to Dr. Nave now?

11. Should they have made it available prior to his admission into the partnership?