Case RBR Doc 535 Filed 09/07/12 Page 1 of 18

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1 Case RBR Doc 535 Filed 09/07/12 Page 1 of 18 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA FORT LAUDERDALE DIVISION IN RE: RUDEN McCLOSKY P.A., 1 Chapter 11 Case Case No BKC-RBR Debtor. / SUMMARY OF FIRST AND FINAL APPLICATION FOR ALLOWANCE AND PAYMENT OF COMPENSATION AND REIMBURSEMENT OF EXPENSES OF GOLDSTEIN SCHECHTER KOCH, ACCOUNTANT TO DEBTOR 1. Name of applicant: Goldstein Schechter Koch 2. Role of applicant: Accountant to Debtor 3. Name of certifying professional: Sanford B. Horwitz, CPA 4. Date case filed: November 1, Date of application for employment: February 1, 2012 [ECF# 325] 6. Date of order approving employment: February 22, 2012 [ECF# 337] 7. If debtors counsel, date of Disclosure of N/A Compensation form: 8. Date of this application: September 7, Dates of services covered: February 13, 2012 through August 31, 2012 Fees Total fee requested for this period (from Exhibit A ) $ 27, Balance remaining in fee retainer account, not yet awarded $ Net amount of fee requested for this period $ 27, Expenses 13. Total expense reimbursement requested for this period $ Balance remaining in expense retainer account, not yet received $ Expenses paid or advanced for this period, by other sources $ Net amount of expense reimbursements requested for this period $ The address of the Debtor as of the filing of this Chapter 11 case was 200 E. Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33301, and the last four digits of the taxpayer identification number of the Debtor are The Debtor s current mailing address is 200 S. Biscayne Blvd., Suite 1818, Miami, FL 33131, c/o Development Specialists, Inc., Chief Restructuring Officer Joseph J. Luzinski. 2 In addition to the request for fees in the amount of $27, incurred during the Application Period, the Applicant is requesting anticipated fees of $9, for the period of September 1, 2012 through the hearing to consider confirmation of the Amended Joint Chapter 11 Plan of Liquidation of Ruden McClosky P.A. [ECF# 510] (the Plan ), which is currently scheduled for September 28, 2012 at 9:30 a.m. The Applicant will file a supplement to this final fee application in advance of the September 28, 2012 confirmation hearing, reflecting the actual fees and expenses incurred during the period of September 1, 2012 through September 28, 2012.

2 Case RBR Doc 535 Filed 09/07/12 Page 2 of Gross award requested for this period (#10 + #14) $ 27, Net award requested for this period (#13 + #17) $ 27, If Final Fee Application, amounts of net awards requested in interim applications but not previously awarded (total from History of Fees and Expenses, following pages): N/A 21. Fee and expense award requested $27, Total fee and expense award requested (not including Anticipated fees of $9, see footnote 2) $27, History of Fees and Expenses 1. Dates, sources, and amounts of retainers received: N/A 2. Dates, sources and amounts of third party payments received: N/A 3. Prior fee and expense awards: None

3 Case RBR Doc 535 Filed 09/07/12 Page 3 of 18 Certification 1. I have been designated by Goldstein Schechter Koch ( Applicant ) as the professional with responsibility in this case for compliance with the current U.S. Department of Justice, Executive Office for United States Trustee s Guidelines for Reviewing the Application for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. 330 for professionals in the Southern District of Florida bankruptcy cases (the Guidelines ). 2. I have read Applicant s application for compensation and reimbursement of costs (the Application ). 3. To the best of my knowledge, information, and belief formed after reasonable inquiry, the Application complies with the Guidelines. 4. To the best of my knowledge, information and belief formed after reasonable inquiry, the fees and disbursements sought fall within the Guidelines, except as specifically noted in this Certification and described in the Application. 5. Except to the extent that fees or disbursements are prohibited or restricted by the Guidelines, the fees and disbursements sought are billed at rates and in accordance with practices customarily employed by Applicant and generally accepted by Applicant s clients. 6. In providing a reimbursable service or disbursement (other than time charged for paraprofessionals and professionals), Applicant does not make a profit on that service or disbursement (except to the extent that any such profit is included within the permitted allowable amounts set forth in the Guidelines for photocopies and facsimile transmission). 7. In charging for a particular service or disbursement, Applicant does not include in the amount for which reimbursement is sought the amortization of the cost of any investment, equipment, or capital outlay (except to the extent that any such amortization is included within the permitted allowable amounts set forth herein for reproductions and facsimile transmission)

4 Case RBR Doc 535 Filed 09/07/12 Page 4 of In seeking reimbursement for a service which Applicant justifiably purchased or contracted for from a third party, Applicant is requesting reimbursement only for the amount billed to Applicant by the third-party vendor and paid by Applicant to such vendor. 9. The Debtor, the U.S. Trustee, and their respective counsels, will be mailed, simultaneously with the filing of the Application with the Court, a complete copy of the Application (including all relevant exhibits). 10. The following are the variances with the provisions of the Guidelines, the date of the specific Court approval of such departure, and the justification for the departure: None I HEREBY CERTIFY that the foregoing is true and correct. Dated this 7th day of September, GOLDSTEIN SCHECHTER KOCH Accountant for Debtor 4000 Hollywood Boulevard, Suite 215 S Hollywood, FL By: Sanford B. Horwitz

5 Case RBR Doc 535 Filed 09/07/12 Page 5 of 18 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA FORT LAUDERDALE DIVISION IN RE: RUDEN McCLOSKY P.A., Chapter 11 Case Case No BKC-RBR Debtor. / FIRST AND FINAL APPLICATION FOR ALLOWANCE AND PAYMENT OF COMPENSATION AND REIMBURSEMENT OF EXPENSES OF GOLDSTEIN SCHECHTER KOCH, AS ACCOUNTANT TO THE DEBTOR GOLDSTEIN SCHECHTER KOCH (the Applicant or GSK ), as accountant for the Debtor, Ruden McClosky P.A. (the Debtor or Ruden ), applies for final allowance of compensation for professional services rendered and reimbursement of the necessary expenses paid or incurred by GSK between February 13, 2012 and August 31, 2012 (the Application Period ), and in support states: 1. On November 1, 2011, (the Petition Date ), the Debtor filed a Voluntary Petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code. 2. On February 1, 2012, the Debtor filed Debtor s Application for Approval of Employment of Goldstein Schechter Koch as Accountant to the Debtor, Nunc Pro Tunc to the Petition Date [ECF# 325] (the Employment Application ), pursuant to the terms of an engagement letter dated as of January 24, 2012, a copy of which was attached to the Employment Application as Exhibit A. As set forth in the Employment Application, GSK was employed by the Debtor to prepare the Debtor s 2011 Federal and State Income Tax Returns and related schedules. 3. On February 22, 2012, the Court entered an Order Approving Employment of

6 Case RBR Doc 535 Filed 09/07/12 Page 6 of 18 Goldstein Schechter Koch, as Accountant to Debtor-in-Possession [ECF# 337], thereby approving GSK s employment as accountant to the Debtor pursuant to 11 U.S.C. 327(a). 4. This application is submitted pursuant to 11 U.S.C. 330 for allowance and payment to GSK of $27, in fees incurred during the period of February 13, 2012 and August 31, All of the services rendered by GSK were performed for and on behalf of the Debtor. I. SUMMARY OF SERVICES RENDERED 6. During the course of the Chapter 11 case, GSK rendered services on behalf of the Debtor for the period of February 13, 2012 through August 31, GSK is requesting $27, in fees for those services, representing 87.9 hours worked. Attached hereto as Exhibit A is GSK s invoice for services rendered during the Application Period, which provides a breakdown by professional of the hours worked in rendering services on behalf of the Debtor. Attached hereto as Exhibit B is an itemized listing of the services provided by GSK as accountant to the Debtor during the Application Period. 7. GSK anticipates incurring additional fees of $9,630.00, representing an additional 28 hours, in rendering accounting services on behalf of the Debtor, for the period of September 1, 2012 through September 28, Attached hereto as Exhibit C is a summary explanation of the variances between the original fee projection and the instant fee request currently under consideration. II. REQUEST FOR COMPENSATION 9. Pursuant to the decisions of the United States Court of Appeals for the Fifth Circuit in In re First Colonial Corp. of America, 544 F.2d 1291 (5 th Cir. 1977); and In re Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5 th Cir. 1974), the Applicant requests

7 Case RBR Doc 535 Filed 09/07/12 Page 7 of 18 that this Court consider the following factors in determining the amount of compensation that is reasonable for the Applicant s services in this case. III. TIME AND LABOR REQUIRED 10. GSK has devoted 87.9 hours in time providing services to the Debtor between February 13, 2012 and August 31, In addition, GSK anticipates spending an additional 28 hours in rendering services to the Debtor, pursuant to the Engagement Letter, for the period of September 1, 2012 through the hearing to consider confirmation of the Plan, presently scheduled for September 28, GSK anticipates that GSK will incur additional fees of $9,630.00, in rendering the additional services to the Debtor. IV. NOVELTY AND DIFFICULTY OF THE ISSUES AND QUESTIONS PRESENTED 11. GSK was retained by the Debtor as accountant to perform accounting services. Specifically, GSK performed the following accounting services on behalf of the Debtor during the Application Period: a. Analyzing the asset purchase sale transaction including deferred and contingent payment elements, and application of assumed liabilities and tax payment provisions. b. Researching appropriate and possible alternative tax treatment of deferred provisions, and proper allocation of sale price between transferred assets. (i) including research of treatment of unrealized work in process for cash method taxpayer, and recognition timing; and (ii) including research of sale price allocated to assumption of liabilities, and timing recognition issues pertaining to assumed liability for cash method taxpayer unpaid expenses both timing of income recognition and allowable deduction for accrued expenses included in this transfer

8 Case RBR Doc 535 Filed 09/07/12 Page 8 of 18 c. Analyzing and discussing with trustee and purchaser representatives issues relating to asset acquisition statement, and allocation between classes in accordance with IRS regulations. d. Analyzing sale, assets transferred to buyer, projected 2011 income and income tax adjustments, and projection of 2011 income taxes. e. Analyzing and making adjustments for remaining assets and liabilities at year end. (i) including write off remaining basis in fixed assets transferred or abandoned. f. Preparing and reviewing consolidated Federal and Florida 2011 corporation income tax returns. (i) including reallocation on prior year net operating loss, alternative minimum tax NOL, and contribution carry-forwards between members of consolidated group. g. Analyzing tax return adjustments for expenses paid from assumed liabilities at year end, and balance of remaining expenses to be paid, including federal and state income taxes. h. Preparing annualized income installment method worksheet in order to reduce and eliminate penalties for underpayment of corporation estimated income taxes. V. SKILL REQUISITE TO PERFORM THE LEGAL SERVICES PROPERLY 12. GSK submits that the accountants assigned to this case have the requisite experience, seniority and skills necessary to effectively and efficiently meet the requirements of the task of this proceeding. GSK believes it has demonstrated the requisite professional skills to skillfully deal with the novel issues encountered in this proceeding and has handled all

9 Case RBR Doc 535 Filed 09/07/12 Page 9 of 18 accounting issues in an efficient and effective manner. VI. PRECLUSION FROM OTHER EMPLOYMENT 13. GSK was not precluded as the result of its representation in this case from accepting other matters. Matters in this case were treated by GSK in an expeditious and professional manner. VII. CUSTOMARY FEE 14. The rates charged by GSK providing services to the Debtor are well within the reasonable range for hourly rates charged by accountants of comparable skills in bankruptcy proceedings in the Southern District of Florida. VIII. TIME LIMITATIONS IMPOSED BY CLIENT OR THE CIRCUMSTANCES 15. GSK has been required to expend time handling issues in this case. IX. THE EXPERIENCE, REPUTATION AND ABILITY OF THE ACCOUNTANT 16. GSK is a small firm having experience in accounting. The quality of work performed by GSK in this proceeding attests to the firm s experience, reputation and ability. X. THE UNDESIRABILITY OF THE CASE 17. GSK does not deem this case to be undesirable and is honored to have been retained as accountant to the Debtor. XI. THE NATURE AND LENGTH OF THE PROFESSIONAL RELATIONSHIP OF THE CLIENT 18. Except as disclosed in the Declaration of Sanford B. Horwitz, CPA, on Behalf of Goldstein Schechter Koch, as Proposed Accountant for Debtor-in-Possession attached to the Employment Application as Exhibit B, the Applicant has no prior relationships with the Debtor

10 Case RBR Doc 535 Filed 09/07/12 Page 10 of 18 XII. APPLICABLE LEGAL STANDARD 19. The Applicant represents that the fees applied for are in conformity with the fees allowed in similar proceedings for similar services rendered and results obtained. GSK respectfully requests that the Court take notice of the awards which have been made in similar proceedings. WHEREFORE, GSK requests that it be allowed the full compensation and reimbursement of expenses sought under this Application. GSK requests this Court enter an Order (i) awarding, on a final basis, fees in the amount of $27, for accounting services rendered by GSK on behalf of the Debtor during the period of February 13, 2012 through August 13, 2012; (ii) awarding, on a final basis, anticipated fees in the amount of $9, for accounting services to be performed by GSK on behalf of the Debtor during the period of September 1, 2012 through September 28, 2012; (iii) authorizing the Debtor to pay to GSK, the sum of $36, representing the fees requested herein; and (iv) granting such other and further relief as the Court deems just and proper. Dated this 7th day of September, GOLDSTEIN SCHECHTER KOCH Accountant for Debtor 4000 Hollywood Boulevard, Suite 215 S Hollywood, FL By: Sanford B. Horwitz

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