John Smith is the controller of Excel Co. ,a private company owned by Rita Cooler.John receives a bonus equal to 10 percent of net income,before the bonus,as calculated in accordance with GAAP.
Required:
Explain how John Smith is both the preparer and a user of the financial statements of Excel Co.and whether or not he will likely try to defer income taxes.

Question

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The Answer of John Smith is the controller of Excel Co. ,a private company owned by Rita Cooler.John receives a bonus equal to 10 percent of net income,before the bonus,as calculated in accordance with GAAP.
Required:
Explain how John Smith is both the preparer and a user of the financial statements of Excel Co.and whether or not he will likely try to defer income taxes.

John Smith Is the Controller of Excel Co