The following situations involve a possible violation of the AICPA's Code of Professional Conduct. For each situation, $(1)$ determine the applicable rule from the Code, $(2)$ decide whether or not the Code has been violated, and $(3)$ briefly explain how the situation violates $($or does not violate$)$ the Code. Please enter Three$-$digit rule number to the Rule and Y or N to the Violation.

$1.$ In $2013,$ Freeman and Johnson, both CPAs, decided to form a CPA practice. In $2015,$ Freeman and Johnson approached Bill Delaney, a physician and medical expert, and asked him to assist them with their growing medical consulting practice. Delaney agreed, but only after he was given an ownership interest in the firm. Delaney does not intend to quit his private medical practice.

Rule:

Question Blank $1$ of $10$

Violation:

Question Blank $2$ of $10$

$2.$ Brian DePalie has a successful dentistry practice in Charleston. Brian has recommended one of his patients to Katie Walton, CPA. To show gratitude for the referral, Katie has agreed to pay Brian a token gift of $$50.$ Katie discloses the payment arrangement to her new clients.

Rule:

Question Blank $3$ of $10$

Violation:

Question Blank $4$ of $10$