bob jones partnership decisions

Project Description:

bob jones, owns a small repair shop, one he has operated as a sole proprietorship for several years. the proprietorship uses the cash method of accounting and the calendar year as its tax year. bob needs additional capital for expansion, and he knows two people who might be interested in investing in the business. one person would like to work for the business, and the other person only wants to invest. bob wants to know the tax consequences of incorporating the business. his business assets include: a building, equipment, accounts receivable, and cash. his liabilities include: a mortgage on the building and a few accounts payable, which are deductible when paid. assume that bob’s ordinary tax rate is greater than 25%.

evaluate the scenario and write a case study/analysis in the form of a memorandum to bob explaining the tax consequences of the incorporation. as part of your analysis, explain the possibility of having the corporation issue common and preferred stock and debt for the shareholders’ property and money. explain what the advantages and disadvantages would be of using stock versus debt in this exchange. would one class of stock be a better choice than another? why or why not? explain.

simply answering the questions which are part of the case is not enough; consider the questions to be clues to the important concepts and facts you need to cover. you are strongly encouraged to use the following outline so that your analysis is organized appropriately:
1.identify both the key issues and the underlying issues. in identifying the issues, you should be able to connect them to the business principles which apply to this situation..
2.discuss the facts which affect these issues. the case may have too much information. in your discussion, you should filter the information and discuss those facts which are pertinent to the issues identified above..
3.discuss your tentative solution to the problem and how you would implement your solution. what actions would you propose, based on the knowledge you have gained in this course? be sure to support your recommendation by citing references in the text and in the supplementary readings. you should also draw on other references such as business periodicals and relevant journals. remember that an analysis is more than simply a summary of the case study..
4.discuss follow-up and contingency plans. how will the organization know that your proposed solution is working? what should they do if it does not work?.

your case analysis should be 2-3 pages in length, not including the title and reference pages. all citations should be in apa 6th edition format. double space your paper, and use times new roman, 12-point font, with one inch margins.
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Price Type: Negotiable

Total Proposals: 6
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