Decision on Four Key Operating decisions

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timer Asked: Dec 27th, 2017
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Question description

Create a memo to stakeholders with an executive summary using logical reasoning based on your tax research to explain why the client should adopt your recommendations for structuring business operations.

TAX 660 Milestone Two Guidelines and Rubric Overview: In addition to the tax consequences of the form in which an entity chooses to do business, the tax consequences of how the entity chooses to manage business operations on a day-to-basis and record them for accounting purposes can also have significant implications for the success of a business. Organizers must make key decisions on how they will operate the entity when the business is formed. Key decisions include the inventory cost-flow assumption, the accounting method to be used, the fiscal year end, and the method for calculating and claiming depreciation of assets. Businesses must also consider how they will structure multijurisdictional operations, and the choice of where to do business can result in tax savings or a substantial increase in tax cost. In Milestone Two, which is due in Module Six, you will make recommendations to the clients in the final project scenario regarding these key operational decisions. Prompt: Read the Milestone Two scenario excerpt below—you can also access the full final project scenario—and then create a professional memorandum that provides recommendations for key operating decisions. For each recommendation, be sure to give a detailed explanation of the associated tax consequences. Specifically, the following critical elements must be addressed:       Create a memorandum to stakeholders with an executive summary using logical reasoning based on your tax research to explain why the client should adopt your recommendations for structuring business operations. Make a recommendation for the appropriate inventory cost flow assumption for a merchandising business. Make a recommendation for the appropriate overall business accounting method (cash, accrual, hybrid). Make a recommendation for the appropriate depreciation method and asset lives, including consideration of Section 179. Make a recommendation for the appropriate fiscal year end for your recommended business entity. Explain the tax implications related to multijurisdictional operations of a business, including interstate and international considerations. Scenario The second meeting is about two weeks after the first meeting. The Tai-Ga owners have completed all the legal steps necessary to set up the new business using the entity form that you recommended during the first meeting. In the second meeting, you will explain the tax elections and other accounting matters that must be considered prior to commencing operations. You will discuss the options available to the Organizers and make specific recommendations. Rubric Guidelines for Submission: Your paper should be a 3- to 5-page Microsoft Word document (excluding the cover page and reference pages), with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format. Critical Elements Memorandum to Stakeholders Proficient (100%) Composes a memorandum to stakeholders, including an executive summary of your recommendation and a detailed support section Needs Improvement (75%) Composes a memorandum to stakeholders, but memo is cursory, contains inaccuracies, or is missing key elements Not Evident (0%) Does not compose a memorandum to stakeholders Value 15 Inventory Cost Flow Determines appropriate inventory cost flow assumption for a merchandising business Business Accounting Method Determines appropriate overall business accounting method Depreciation Method and Asset Lives Fiscal Year End Multijurisdictional Operations Articulation of Response Determines appropriate depreciation method and asset lives, including consideration of Section 179 Determines appropriate fiscal year end for recommended business entity Explains the tax implications related to multijurisdictional operations of a business, including interstate and international Submission has no major errors related to citations, grammar, spelling, syntax, or organization Determines appropriate inventory cost flow assumption for a merchandising business, but assumption contains inaccuracies or is missing key elements Determines appropriate overall business accounting method, but explanation contains inaccuracies or is missing key elements Determines appropriate depreciation method and asset lives, but explanation contains inaccuracies or is missing key elements Determines appropriate fiscal year end for recommended business entity, but explanation contains inaccuracies Explains the tax implications related to multijurisdictional operations of a business, but explanation contains inaccuracies or is missing key elements Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not determine appropriate inventory cost flow assumption for a merchandising business Does not determine appropriate overall business accounting method 16 Does not determine appropriate depreciation method and asset lives 16 Does not determine appropriate fiscal year end for recommended business entity Does not explain the tax implications related to multijurisdictional operations of a business, including interstate and international Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 16 16 16 5 100%

Tutor Answer

Emilyprofessor
School: New York University

HelloAm currently assigned your work, will be able to help you out
Attached.

Running Head: MEMORANDUM

1

Name
Course
Instructor
Date

MEMORANDUM

2

To: A memo to all customers, suppliers, workers and all the stakeholders’ altogether
From: The management- Tai-Ga owners
Date: 27/12/2017
Subject: Recommendations for key operating decisions.
Executive summary of Awesome Distributors
The Tai-Ga business that is a newly introduced sole proprietorship business. The business is
managed by Tai-Ga owners. As a sole proprietorship form of business, the business is
adequately managed by a single person as it is still small. Its main products are kitchenware, i.e.,
utensils, cutlery, cooking pans among others. The business is charged with the role of selling as
well as distributing the goods to the customers at their doorstep, and this happens to be a
competitive advantage.
Appropriate inventory cost flow assumption for a merchandising business
Inventory cost flow assumptions are crucial in the calculation of the value of goods that have
been sold as well as the final inventory. Different businesses assume different assumptions on
the goods to be sold as well as those to remain in the inventory. The main purpose of these
assumptions is for tax agreement. The main function of tax assumption is to ensure that the sum
of the value of all goods sold plus those that are in ...

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Anonymous
Outstanding Job!!!!

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