The following situations involve a possible violation of the AICPA's Code of Professional Conduct. For each situation, (1) determine the applicable rule from the Code, (2) decide whether or not the Code has been violated, and (3) briefly explain how the situation violates (or does not violate) the Code. a. In 2017, Jones and Bachs, both CPAs, decided to form a CPA practice. In 2018, Jones and Bachs approached Bob Dill, a physician and medical expert, and asked him to assist them with their growing medical consulting practice. Dill agreed, but only after he was given an ownership interest in the firm. Dill does not intend to quit his private medical practice.
(1 ) Rule: (2) Violation? Yes No
(3) Explanation:

b. Bob Paddy has a successful dentistry practice in Chicago. Bob has recommended one of his patients to Olive Oil, CPA. To show gratitude for the referral, Olive has agreed to pay Bob a token gift of $50. Olive discloses the payment arrangement to her new clients.
Rule: Violation? Yes No