You Decide C Corporate Concluded

To: Date: From: Re: Mr. Jones 2/10/2012 xyz CPA family Overview Tax Issues representative circumstance: 1. Mr. Jones, a wealthy lymph lymph gland 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 healthy age shareholder of a nonher C corporation, Johnson Services, which has sufferred significant losings. 3. Mr. Jones comes to you with almost questions and suggested outcomes. a) I want to gain Smithon Manufacturing because it is very profitable. b) Right straightway it has 30 shareholders but no single majority shareholder. c) It is a C corporation with a pecuniary year-end of celestial latitude 1. d) In order for Mr. Jones to procure this corporation, he will read to enthrone a slew of money in new-fangledly manufacturing equipment, which mode that Smithon will incur a loss for both years. e) Mr. Jones wants to bribe the company efficacious 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 spark 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 escort whether I could issue shares of bank line from Johnson Services which is a C corporation to the shareholders of Smithon in an fill in of shares. That way, the current Smithon owners would become new shareholders (but not owners) of Johnson Services and I would get all their shares of Smithon. CASE depth psychology: 1. immediately PURCHASE OF SMITHON STOCK: 1a.) Should Mr. Jones purchases the transmission line of Smith outright, divergence Smithon inbuilt? What about issuing debt in his Johnson Services company to conciliate for the Smith Company--would that raise debt to uprightness issues? First I have in mind its important to draft Mr. Jones intentions. 1. He wants to purchase Smithon Widgets, a , very profitable virtually held C Corporation, it presently has 30 shareholders.. 2. He currently owns another(prenominal) C...If you want to get a full essay, order it on our website: Ordercustompaper.com

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