Listed below are sources of law and legal situations. For each of the situations, indicate the letter corresponding to the law tha applies. SOURCES OF LAW
1. Common law
2. The Securities Act of 1933
3. The Securities Exchange Act of 1934
Legal Situations
A. Form S-1 includes material misstatements of the audited financial statements.
B. The client files a lawsuit against the CPAs for negligence in the performance of tax services.
C. A stockholder sustains a loss when he purchases 100 shares of stock in a public company (issuer) from another stockholder in reliance upon audited financial statements included in Form 10-K.
D. Compiled financial statements of a nonpublic company are discovered to include material misstatements.
E. A quarterly statement (10-Q) of a client is materially mis-stated.
F. A bank loses money that it loaned to an issuer in reliance upon financial statements filed with the SEC.
G. An initial purchaser of bonds of an issuer sustains a loss.
H. A CPA is criminally prosecuted for willingly allowing misstatements in a client's financial statements contained in a registration statement.
I. The initial purchaser of common stock of an issuer sustains a loss.
J. Accounting related consulting services resulted in a system that misstated income of a nonpublic company.

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $208,000. what would the new 39 percent bubble rate have to be? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

There are three factors that can affect the shape of the treasury yield curve (r* t , ip t , and mrp t ) and five factors that can affect the shape of the corporate yield curve (r* t , ip t , mrp t , drp t , and lp t ). the yield curve reflects the aggregation of the impacts from these factors. suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the us treasury yield curve can take. check all that apply. a. downward-sloping yield curveb. upward-sloping yield curvec. inverted yield curve