Kosma, a member, is a partner at Beltran \& Freese, CPA's and is the lead engagement partner for the audit of Cardinal Manufacturing. The firm has performed an audit of Cardinal Manufacturing for the past ten years and Kosma has been the lead engagement partner for all of that period. Wacha is the CFO for Cardinal Manufacturing and has been so during the entire time that Beltran \& Freese, CPA's has performed the audit for Cardinal Manufacturing. Wacha, knowing that Kosma enjoys drinking moderately priced red wines, buys Kosma a $15 bottle of Merlot as a holiday gift. Would the acceptance of this gift from Wacha by Kosma impair Beltran \& Freese, CPA's independence with respect to Cardinal Manufacturing? 1. Yes, the acceptance of the gift would impair the firm's independence. 2.No, since the value of the gift is clearly insignificant to Kosma 3.Since Wacha is not an owner of Cardinal Manufacturing, any gift from him to Kosma, regardless of value, would not impair Beltran \& Freese, CPA's independence with respect to Cardinal Manufacturing 4. None of the above are correct.