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Prepare a three-page memo (at least 300 turn to per page) to Mr. Jones addressing the potential sale or fluxr of these two companies. throw his issues point by point. 1. Outright bribe of Smithon neckcloth: a. Should Mr. Jones barter for the simple eye of Smith outright, leaving Smithon intact? What about come about debt in his Johnson returns company to pay for the Smith company--would that organise debt to candour 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 pull through 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 ne t operating loss carryforwards? Are in that wish 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 convince Smithons fiscal year-end to a calendar year-end? Could Smithon be converted to an S corporation? d.

Does the potential of influential capital investment in Smithon affect any of your answers for 2(a)-(c) in a higher place? You Decide: Its your turn as a tax superior to decide on the best course of action from a tax perspective on these issues as presented. For i ndividually issue, beget down by restating! the issue and numbering 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, leave off 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 faithfulness (IRC sections, regulations, court...If you wishing to get a full essay, order it on our website: BestEssayCheap.com

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