Reference no: EM13758089
Assignment 1: Client Letter
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 Chapter 1 and demonstrated in Appendix A of your textbook as a guide.
Write a one to two (1-2) page letter in which you:
1. Compare the tax advantages of debt versus equity capital formation of the corporation for
the client.
2. 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.
3. Use the six (6) step tax research process, locatedin 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.
- Include a cover page containing the title of the assignment. 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
|
What programming language did grace hopper invent
: What programming language did Grace Hopper invent. What was the name of the network begun in 1969? What does it stand for
|
|
Cash collections of woodpecker co
: Woodpecker Co. has $296000 in accounts receivable on January 1. Budgeted sales for January are $860000. Woodpecker Co. expects to sell 20% of its merchandise for cash.
|
|
Backtracking from globalization
: Illustrate with two examples how the U.S. has restrained trade over the past 60 years and state why you think that happened.
|
|
Problem related to the entire order
: Webster Inc. has received a bid for 12,000 units. The costing estimates show that the average cost per unit for this bid will be $600. The company uses cost-based pricing and adds 25% markup to total costs. What total price will Webster ask for th..
|
|
Assignment on client letter
: 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.
|
|
Which exceptions of metamorphosis by ovid is most important
: In your conversation you talk about a few of these exceptions. Your fellow committee member then asks, "which of those exceptions of Metamorphosis by Ovid is the most important?"
|
|
What is the net result of reducing the duration of a task
: A statistical term that refers to the philosophy and methods companies use to eliminate defects in their products and processes by establishing a quality goal of no more than four defects.
|
|
Financial statement restatement and ethics
: Assess the factors that contributed to the financial statement restatement, signifying the executive management team's attitude toward the restatement. Suggest how the restatement may have been avoided during the initial reporting process.
|
|
Determine cash generated from operations
: 1) Which financial statement is used to determine cash generated from operations?
|