Accounting Tutor,

I am not asking for you to write the the memo itself. I would just like to know your guys recommendation for each of the assets and why.

**WILLING TO GIVE LARGE TIP

ACC 331 Spring 2016 Writing Assignment A senior manager at the CPA firm where you are employed forwarded you an e-mail from a client. The tax manager asks you to write a one to two page memo to Wayne Nesbitt, the senior tax manager on the account, explaining the relevant tax issues and providing advice to the client. The tax manager says you must give the memo to Wayne Nesbitt at the beginning of your regular meeting time on Thursday, March 24, 2016. Here is the e-mail: Dear Adam: (It is November 2015 and) ABN Corp. is considering the disposal of two assets. We would like to get a better understanding of the tax consequences of these proposed transactions. The first asset is land in Detroit we acquired in 2010 for $350,000. The land was acquired to be the site of our future headquarters but we have identified a new site in East Lansing. The Detroit land currently has a fair market value of $400,000, while the East Lansing site is priced at $420,000. We no longer have a need for the Detroit land, so we want to get rid of it. We have two options. First, we could sell the Detroit land and use the proceeds, along with an additional $20,000 in cash, to pay for the East Lansing site. Second, we would like to exchange the Detroit land for East Lansing site and pay the vendor the $20,000 difference in cash. However, we are not sure the owner of the East Lansing site is willing to exchange. Our lawyers advise us that we can use a real estate broker as an intermediary, if the owner of the East Lansing site is unwilling to exchange. The second asset is stock we purchased three years ago for $120,000. We can sell the stock for its current fair market value of $150,000; we do not anticipate any further appreciation. We normally make an annual charitable contribution of a $150,000 to Michigan State University, a qualified public charity. Our CEO has suggested that for 2015 we can either 1) donate the stock to MSU or 2) sell the stock and donate the sale proceeds. However, she would like to wait until January 2016 to present the donation during her plan visit to MSU. Year to date we have made $130,000 of charitable contributions to various qualified public charities. As always, the CFO wants us to defer income and accelerate deductions whenever possible. These are the only assets we plan to dispose of this year. We are having a very profitable year and expect our taxable income to $5M before considering the above transactions. Let me know your thoughts on the above. Thanks, Mandy Green Controller ABN Corp. Note: The assignment will be graded by the Ernst & Young Communication Center (EYCC) to provide you individualized professional feedback on your writing skills. Late assignments will not be accepted. Plagiarism, copying, or other academic misconduct will result in a zero for this assignment and may be reported to the Dean's office