Use the partnership and corporate tax returns for the practice sets titled, “Walk Upright Company” and “No More Ice, Inc.” that were prepared in Weeks 4 and 7.
Write a 4-5 page paper in which you:
Compare and contrast the advantages and disadvantages inherent in electing to become a partnership and a corporation. Indicate key aspects in which the resulting choice is likely to impact tax obligations.
Imagine that you are a Partner at Walk Upright Company. Justify to your team why you elected to become a partnership in an effort to minimize tax liability. Prepare a response to the objection that this election was the best choice.
Imagine that you are the Chief Financial Officer (CFO) at No More Ice, Inc. Justify to your management team why you elected to become a corporation.
Determine whether becoming a corporation was a wise choice as a potential strategy to minimize tax liability as a result. Provide support for your rationale.
Analyze the steps that the leadership in a partnership or a corporation must take in order to change the entity’s existing election. Provide examples of circumstance under which changing the existing election would be appropriate. Indicate how this election change, once complete, may either generate a tax liability or be a benefit. Provide support for your rationale.
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.