During its prior tax year, your client acquired from a thirdparty a license granted by the federal government. The client tellsyou that he/she believes that the license has a useful life of 8years and produces a report, prepared by another firm, supportingthat useful life. You look at the report and do not believe that itis very convincing. Discuss how you would handle this situationkeeping in mind any ethical and professional considerations. Whatare the penalty risks to your client and your own firm if you relyon this report?Be sure to back up your opinion with articles fromthe Keiser University library and Treasury Department Circular No.230.
