You have been approached by promoters to give an opinion on the financial statements to be included in the prospectus of a proposed corporation to be named U-Park Corporation. 

U-Park will own and operate a downtown parking garage and plans to purchase parking lots. The promoters now own and operate a parking garage which they acquired 3 months ago for \($100,000.\) At the time of acquisition an independent expert appraiser placed a value of \($300,000\) on the property. There has been no change in the values of downtown properties in recent months. The property is currently mortgaged for \($50,000. \)

The new corporation will have an authorized capital of 50,000 shares with a par value of \($10\) per share. The promoters will receive 25,000 shares of stock in exchange for the parking garage, which U-Park will acquire subject to the existing mortgage of \($50,000.\) There will be a public offering of the remaining 25,000 shares at \($9\) per share. The public sale will not be subject to SEC approval because the sale will be restricted to the residents of one state. 

It is the intention of the promoters to have the prospectus balance sheet show a value of \($300,000\) for the parking garage and a net worth of \($250,000. \)

Would it be proper to allow your name to be used in connection with this proposed balance sheet if full disclosure is made in a note to the balance sheet? Discuss fully.