Student

Prepare a three-page memo (at least 300 character per page) to Mr. Jones addressing the potential sale or combiner of these two companies. guile his issues point by point. 1. Outright bribe of Smithon neckcloth: a. Should Mr. Jones leverage the rip of Smith outright, leaving Smithon intact? What about retrovert debt in his Johnson returns company to pay for the Smith company--would that organise debt to uprightness issues? b. Should Mr. Jones convert Smithon to an S gage and alter the pecuniary year-end to a calendar year-end? c. What potential income assess ramifications hold out for Mr. Jones personally if he purchases the stock of Smithon and converts it to an S corporation? d. Should Mr. Jones merge Johnson Services with Smithon? What type of merger or achievement would be best (i.e., A type, etc.)? 2. Merger or acquisition of Smithon by Johnson Services a. If the two companies are merged, could Smithon use Johnson Services net oper ating loss carryforwards? Are in that obeisance any limitations on their use? b. Should Mr. Jones use Johnson Services stock to acquire Smithon? Why or why not? c. Would a merger or acquisition affect Mr. Jones ability to diversity Smithons fiscal year-end to a calendar year-end? Could Smithon be converted to an S corporation? d.

Does the potential of lordly capital investment in Smithon affect any of your answers for 2(a)-(c) above? You Decide: Its your turn as a tax maestro to decide on the best course of action from a tax perspective on these issues as presented. For for each one issue , fiddle down by restating the issue and n! umbering as shown above [i.e., 1(a), 1(b), etc.]. Next, develop and discuss the tax rules that apply to the issue, which you gleaned from your tax research. Then, cease with a definitive answer to the issue, supported by citations to the sources used. Thus, for each issue, you should: area the issue; explain and discuss the applicable fair play (IRC sections, regulations, court...If you wishing to get a full essay, order it on our website: BestEssayCheap.com

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