This is part 1, which is due on October 23. Part 2 is included in the end of this assignment, but is not due until October 27.

Financial Accounting Standards Board (FASB 2008). Statement of Financial Accounting Standards No. 57 Related Party Disclosures.

Financial Accounting Standards Board (FASB 2020). Accounting Standards Codification 850 Related-Party Transaction.

Nurnberg, Hugo and Thomas F. Schaefer (2010). Integrative Case in Advanced Accounting. Issues in Accounting Education 25, No. 2, 323–329.

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

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

3. What advice would you give Dr. Naïve prior to renewing the partnership agreement?

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

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

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