Howard is one of the directors of Chester Limited. In the current financial year, Chester Limited paid $60 000 to Longfield Agency, where Howard's brother works, for the consultancy services it provided. In addition, Chester Limited also paid $4000 to Howard for a once-off consultancy he provided on a specific project. Which of the following statements describes the relationship between Howard, Chester Limited, and Longfield Agency?
A) Howard is not a related party to Chester Limited.
B) Longfield Agency is a related party to Chester Limited.
C) The $4 000 consultancy fee is not a related party transaction.
D) The $60 000 consultancy fee is not a related party transaction.
Correct Answer:
Verified
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