During its prior tax year, your client acquired from a third party a license granted by the federal government.
The client tells you that he/she believes that the license has a useful life of 8 years and produces a report, prepared by another firm, supporting that useful life. You look at the report and do not believe that it is very convincing. Discuss how you would handle this situation keeping in mind any ethical and professional considerations. What are the penalty risks to your client and your own firm if you rely on this report?
In the given situation, I would need to discuss with the third party who have prepared the report and analyze the valuation... View the full answer