Brooke and Tracy are recent graduates who work for a company that sells access to a cloud-based
Question:
Brooke and Tracy are recent graduates who work for a company that sells access to a cloud-based contact management system. They each earn between $50,000 and $70,000 per year. Working nights and weekends, they are developing two games for mobile devices. One game, Treachery and Towers, is nearing completion. The other game, Thirteenth Ring, is still in the early stages. Brooke came up with the premise for each game and began work on the underlying scripts, but Tracy finished the underlying scripts and is doing all of the coding. Taylor is a friend of Brooke's who wants to invest in the business, and the coding would go faster if Tracy did not have to work so many shifts at her second job.
- Brooke owes $22,000 in school debt. Brooke owns a 8 year old Honda Civic and has saved $3,000 towards a trip to Iceland.
- Tracy works a second job in retail at an electronics store because Tracy has $60,000 in school debt, $3,500 in consumer debt and often struggles to pay ½ the rent for the apartment that Tracy shares with Brooke.
- Taylor has no debt and has $20,000 in savings, owns a new car and recently inherited a cottage worth $3,000,000 from a grandparent. The cottage has been in the family for over 70 years. The grandparent left the cottage to Taylor because Taylor was the only grandchild who promised to: (i) keep the cottage in the family for the next generation; and (ii) allow Taylor's parents and aunts and uncles to use the cottage for part of the summer.
- Brooke, Tracy and Taylor all live and work in Toronto, Ontario.
- With reference to the facts provided, what structure should they use for the business? Explain why.
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton