ACC 565 Assignment 1 Client Letter Assignment 1 : Client Letter
Imagine that you are a Certified Public Accountant ( CPA ) with a new client who needs an opinion on the most advantageous capital structure of a new corporation . Your client formed the corporation in question to provide technology to the medical profession to facilitate compliance with the Health Insurance Portability and Accountability Act ( HIPAA ). Your client is very excited because of the ability to secure several significant contracts with sufficient capital . Use the Internet and Strayer databases to research the advantages and disadvantages of debt for capital formation versus equity for capital formation of a corporation . Prepare a formal letter to the client using the six ( 6 ) step tax research process in Chapter 1 and demonstrated in Appendix A of your textbook as a guide . Write a one to two ( 1-2 ) page letter in which you :
1 . Compare the tax advantages of debt versus equity capital formation of the corporation for the client . 2 . Recommend to the client whether he / she should use debt or equity for capital formation of the new corporation , based on your research . Provide a rationale for the response . 3 . Use the six ( 6 ) step tax research process , located in Chapter 1 and demonstrated in Appendix A of the textbook , to record your research for communications to the client . 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 .