a b

c d e f

g h

$4,000,000 net income.

HOMEWORK QUESTIONS

What is an accounting entity? Is an accounting entity defined differently for a corporation than for a partnership? How useful is Modern Cardiologys income statement as presented in Exhibit 1 in re- solving this income-sharing dispute? What are its limitations? Does it conform to U.S. generally accepted accounting principles GAAP? Does the FASB Accounting Standards Codification Related-Party Disclosures Topic FASB 2009 provide any guidance? What is the appropriate entity for assessing the reasonableness of Modern Cardiologys income distribution and profitability?

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