Jackson and Ella Haney own a successful chain bookstore specializing in children’s books called Pages, Inc. Pages’ stock trades on the public stock exchange. Each quarter, their accountant Felicity Agnes prepares financial statements. She is currently preparing financial statements for the quarter ended December 31, 2021.The Haneys do not like paying taxes so they try to expense as much as they can in order to lower their taxes. They recently hired a new executive who will start working in January of 2022 with an annual salary of $150,000 per year. Ella advises Felicity to go ahead and expense the entire salary on this quarter’s financial statements since the executive has signed her contract. Also, Jackson and Ella’s four-year-old son Alex is starting school next year at a local private school whose $5,000 tuition deposit is due. Ella requests that Felicity write a check to the school from Pages’ checking account, reasoning that the business needs him to have an education so he can take over as CEO down the road. She tells Felicity to record this as an education expense. In addition, Ella wants to ensure investors see their assets increasing from the prior year so she advises Felicity to include the value of customer satisfaction and expertise of employees as an asset. Felicity hesitates to listen to Ella’s recommendations because she knows they are not in accordance with GAAP, but she fears losing her job if she does not comply.