Compare the tax advantages of debt versus equity capital

Assignment Help Accounting Basics
Reference no: EM131017579

Imagine that you are a Certified Public Accountant (CPA) with a new client who needs an opinion on the most advantageous capital structure of a new corporation. Your client formed the corporation in question to provide technology to the medical profession to facilitate compliance with the Health Insurance Portability and Accountability Act (HIPAA). Your client is very excited because of the ability to secure several significant contracts with sufficient capital.

Use the Internet and Strayer databases to research the advantages and disadvantages of debt for capital formation versus equity for capital formation of a corporation. Prepare a formal letter to the client using the six (6) step tax research process in

Write a one to two (1-2) page letter in which you:

Compare the tax advantages of debt versus equity capital formation of the corporation for the client.

Recommend to the client whether he / she should use debt or equity for capital formation of the new corporation, based on your research. Provide a rationale for the response.

Use the six (6) step tax research process, located in Chapter 1 and demonstrated in Appendix A of the textbook, to record your research for communications to the client.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies.

Use technology and information resources to research issues in organizational tax research and planning.

Write clearly and concisely about organizational tax research and planning using proper writing mechanics.

Reference no: EM131017579

Questions Cloud

What is the opportunity cost for zerbia : Suppose that Zerbia is currently producing at point D on this PPF. What is the opportunity cost for Zerbia of producing one additional unit of consumer goods? In your answer make sure you provide a numeric value as well as the units of measurement..
Write an essay proposal for african music history : Write an essay proposal for African Music History. The desscription of African music. Described the earlist Africa music and how does it start. How did the music change in these years?
What are the most important aspects of the site : What makes this site so historic and what are the most important aspects of the site? Your impressions of the site: what were you most impressed by, were you surprised by what you learned, etc.
Write a program for ijvm called scramble : Write a program for IJVM called scramble that takes lowercase text from input and prints the next character (i.e. ‘b' is printed as ‘c') and uppercase text and prints the character before (‘B' is printed as ‘A'). Print all other characters as is.
Compare the tax advantages of debt versus equity capital : Use the Internet and Strayer databases to research the advantages and disadvantages of debt for capital formation versus equity for capital formation of a corporation. Prepare a formal letter to the client using the six (6) step tax research proce..
What is contained in the payload of the packet : After the VPN server receives a positive reply from server T, the VPN server will tell program Z that Alice is a legitimate employee. Then program Z will send out the message to the VPN server. When the message leaves program Z, what is contained ..
Professional judgment in context feature : Inherent risk at the financial statement level relates to (a) business and operating-related risks and (b) financial reporting risks.The Professional Judgment in Context feature, "Risks Associated with Financial Statement Misstatements,
Crossing over occurs during which phase of meiosis : ATP is generated by both plants and animals using ATP synthase and a proton gradient.
Estimate the fixed cost of electricity per month : Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Round off the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Overhead costs

Compute the departmental overhead rates using machine hours as the cost driver.Compute a company-wide overhead rate using machine hours as the cost driver.Compute the overhead costs per batch of MaxiFlow and Alaska assuming:

  Halifax manufacturing allows its customers to return

halifax manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and

  Lancastor company manufactures two types of hair

lancastor company manufactures two types of hair conditioners creemy and shiney out of a joint production process. the

  Pan company received proceeds of 160000 on 10-year 8 bonds

pan company received proceeds of 160000 on 10-year 8 bonds issued on january 1 2013. the bonds had a face value of

  Complete the following exercise frank weston supervisor of

complete the following exercise frank weston supervisor of the freemont corporations machining department was visibly

  Give examples of how your two selected components of

internal controls are required to safeguard assets and to ensure ethical business practices. 1 identify and explain the

  Cardinals corporation purchased a computer

Cardinals Corporation purchased a computer on December 31, 2013, for $210,630, paying $60,180 down and agreeing to pay the balance in five equal installments of $30,090 payable each December 31 beginning in 2014. An assumed interest rate of 9%..

  Compute the companys contribution margin

Compute the companys contribution margin assuming the company uses the contribution margin format income statement.

  For each proposal compute the payback peroid return on

a firm is considering two alternative proposals for modernizingits production facilities. to provide a basis for

  Tower of pizza makes a unique double stacked pizza the

tower of pizza makes a unique double stacked pizza. the companys annual fixed expenses are 54000. the sales price of

  Calculate the unit manufacturing cost of the us and eu

wedig diagnostics manufactures two lasers photometer that are used in preparing dnas. the us model is designed for use

  How much should be reported as taxes receivable

Ledford County levied property taxes of $10,000,000, 2% of which is expected to be uncollectible. Prior to this new levy, the county still had $350,000 of uncollected taxes from previous years. How much should be reported as Taxes Receivable after th..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd