Choice "B" is correct. A reporting accountant may report on the application of the requirements of an applicable financial reporting framework to a proposed future transaction as long as the transaction involves the facts and circumstances of a specific entity.
Choice "a" is incorrect. A reporting accountant is prohibited from providing a report on the application of the requirements of an applicable financial reporting framework to "hypothetical transactions," which are defined as those not involving the facts and circumstances of a specific entity.
Choices "c" and "d" are incorrect. The reporting accountant's written report on the application of an applicable financial reporting framework should include an identification of the specific entity involved; a brief description of the nature of the engagement; a statement that the engagement was performed in accordance with AICPA standards; a description of the specific transaction(s); a statement of the relevant facts, circumstances, assumptions and source of the information; a statement describing the appropriate application of the requirements of the applicable financial reporting framework to the specific transaction or type of report; a statement that the preparers of the financial statements are responsible for proper accounting treatment; a statement that any difference in facts, circumstances or assumptions presented may change the report; a separate paragraph restricting its use to specified parties; and a statement indicating that the reporting accountant is not independent (if appropriate).