You Decide C Corporate Concluded

To: Date: From: Re: Mr. Jones 2/10/2012 xyz CPA buckram Overview Tax Issues lineament BACKGROUND: 1. Mr. Jones, a wealthy lymph boss of the firm, has decided to purchase a manufacturing lodge, Smithon Wid requires (a C potty) that has been very profitable. 2. This client, Mr. Jones, is the sub judice age shareholder of a nonher C corporation, Johnson Services, which has incurred significant losses. 3. Mr. Jones comes to you with close to questions and suggested outcomes. a) I want to obtain Smithon Manufacturing because it is very profitable. b) Right in a flash it has 30 shareholders but no single majority shareholder. c) It is a C corporation with a monetary year-end of celestial latitude 1. d) In order for Mr. Jones to defile this corporation, he will hit the books to enthrone a lot of money in impudently manufacturing equipment, which mode that Smithon will incur a loss for twain years. e) Mr. Jones wants to buy the company effective January 1. f) Mr. Jones indicated that he wanted to buy the company from the shareholders and convert it to an S corporation, in order to take off Smithons profits with the losses from Johnson Services. g) Also, Mr. Jones wanted a fiscal year-end that is also a calendar year-end, i.e., December 31.

h) We should consider whether I could issue shares of job from Johnson Services which is a C corporation to the shareholders of Smithon in an exchange of shares. That way, the current Smithon owners would become brisk shareholders (but not owners) of Johnson Services and I would get all their shares of Smithon. CASE depth psychology: 1. OUTRIGHT PURCHASE OF SMITHON STOCK: 1a.) Should Mr. Jones purcha! ses the stock of Smith outright, divergence Smithon intact? What about issuing debt in his Johnson Services company to pay for the Smith Company--would that raise debt to equity issues? First I think its important to dodging Mr. Jones intentions. 1. He wants to purchase Smithon Widgets, a , very profitable most held C Corporation, it presently has 30 shareholders.. 2. He currently owns some other C...If you want to get a full essay, order it on our website: BestEssayCheap.com

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