Due Week 2 and worth 150 points 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. The cover page and the reference page are not included in the required assignment page length. Download Attachment: ACC 565 Assignment 1 rubric.docx Additional Requirements Min Pages: 2 Level of Detail: Show all work

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric. Points: 150 Criteria 1. Compare the tax advantages of debt versus equity capital formation of the corporation for the client. Assignment 1: Client Letter Unacceptable Fair Proficient Exemplary Below 70% F 70-79% C 80-89% B 90-100% A Partially compared the tax Satisfactorily compared the advantages of debt versus tax advantages of debt equity capital formation of versus equity capital the corporation for the client. formation of the corporation for the client. Thoroughly compared t tax advantages of debt versus equity capital formation of the corpora for the client. 2. Recommend to the client Did not submit or Partially recommended to Satisfactorily recommended whether he / she should use debt incompletely recommended the client whether he / she to the client whether he / or equity for capital formation of theto the client whether he / should use debt or equity for she should use debt or new corporation, based on your she should use debt or capital formation of the new equity for capital formation research. Provide a rationale for equity for capital formation corporation, based on your of the new corporation, the response. of the new corporation, research. Partially provided based on your research. Weight: 35% based on your research. Did a rationale for the response. Satisfactorily provided a not submit or incompletely rationale for the response. provided a rationale for the response. Thoroughly recommend to the client whether he she should use debt or equity for capital format of the new corporation, based on your research Thoroughly provided a rationale for the respon 3. Use the six (6) step tax research Did not submit or process, located in Chapter 1 and incompletely used the six demonstrated in Appendix A of the (6) step tax research textbook, to record your research process, located in Chapter for communications to the client. 1 and demonstrated in Partially used the six (6) Satisfactorily used the six step tax research process, (6) step tax research located in Chapter 1 and process, located in Chapter demonstrated in Appendix A 1 and demonstrated in of the textbook, to record Appendix A of the textbook, your research for to record your research for Appendix A of the textbook, communications to the to record your research for communications to the client. client. communications to the client. Thoroughly used the six step tax research proce located in Chapter 1 an demonstrated in Appen of the textbook, to recor your research for communications to the client. Serious and persistent Partially free of errors in errors in grammar, spelling, grammar, spelling, punctuation, or formatting. punctuation, or formatting. Error free or almost erro free grammar, spelling, punctuation, or formattin Weight: 35% Weight: 10% 4. Writing Mechanics, Grammar, and Formatting Weight: 5% 5. Appropriate use of APA in-text citations and reference section Weight: 5% Did not submit or incompletely compared the tax advantages of debt versus equity capital formation of the corporation for the client. Mostly free of errors in grammar, spelling, punctuation, or formatting. Lack of in-text citations and /In-text citations and Most in-text citations and or lack of reference section. references are provided, but references are provided, they are only partially and they are generally formatted correctly in APA formatted correctly in APA style. style. In-text citations and references are error fre almost error free and consistently formatted correctly in APA style. 6. Information Literacy/Integration Serious errors in the of Sources integration of sources, such as intentional or accidental Weight: 5% plagiarism, or failure to use in-text citations. Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing. Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing. Sources are consistentl integrated using effectiv techniques of quoting, paraphrasing, and summarizing. 7. Clarity and Coherence of Writing Information is confusing to the reader and fails to Weight: 5% include reasons and evidence that logically support ideas. Information is partially clear with minimal reasons and evidence that logically support ideas. Information is mostly clear and generally supported with reasons and evidence that logically support ideas. Information is provided clear, coherent, and consistent manner with reasons and evidence t logically support ideas