STRAYER ACC565 Week 2 Assignment 1-Client Letter

Assignment 1: Client Letter
Due Week 2 and worth 150 points
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:
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.
Click .strayer.edu/bbcswebdav/institution/ACC/565/1148/Week2/Week%202%20Assignment%201%20rubric.html”>here to view the grading rubric for this assignment.