Use the FASB Codification for your research

Use the FASB Codification for your research. Please use footnotes or endnotes to document any references to authoritative literature Assume you are the auditor for Bricks & Mortar Co. Write a letter to Thomas Payne, the corporate controller, explaining the proper accounting treatment. For the client’s convenience, you should include any required journal entries. The address of the company is 601 Park Lane, Austin, Texas 73301. You will need to come up with a name and address for your accounting firm. The letter should be dated February 1, 2015.
– Assume penalties and interest do not apply for this reporting period.
– You do not need to address the disclosure or other presentation requirements.
– The appropriate journal entry for an unrecognized tax benefit is as follows.

Federal Income Tax Expense X Liability for Unrecognized Tax Benefits X Bricks & Mortar Co. (the “Company”), an SEC registrant, is a manufacturer of construction equipment. The Company has been in business for more than 50 years, operating profitably for the past 25. In addition, it has an applicable tax rate of 40 percent and no unused tax loss or credit carryforwards. The Company’s fiscal year ends on December 31. In prior years, the Company determined it had no uncertain tax positions that required recognition under ASC 740. The last date of payment of fiscal year 2014 tax is March 15, 2015, for purposes of accruing interest and penalties under the tax law. The Company is preparing its financial statements for the year ended December 31, 2014. In determining the amount of its 2014 tax provision, the Company has prepared a draft of its 2014 tax return.

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