Help is needed with milestone 2 ACC 630, the attached file includes rubric and guidelines.

ACC 630 Milestone Two Guidelines and Rubric This is the second of three milestone assignments that will lead to completion of your course project. In this assignment, you will complete Sections III and IV of the final project. For this part of the assessment you will prepare a Word document that addresses the critical elements below. Make sure you answer each question in a substantive way and defend your content with at least one scholarly source other than your textbook. You will want to pay close attention to the grading rubric in order to make sure you meet the exemplary level in each requirement. Specifically, the following critical elements must be addressed: III. Estate Planning A. In terms of minimizing tax liability, how would estate planning differ from a partnership to a corporation? B. For estate planning purposes, what are the advantages of setting your business up as a corporation versus a partnership? Defend your response. C. Describe your company's succession plan and whether or not it aligns with your company's vision. D. Based on your responses, what estate planning strategy would be most effective in minimizing tax liability? Why? IV. Trusts A. Draw a conclusion about the purpose for the company's trust based on the research of your company. B. Why would a small business owner want to set up a trust and how could it be used for estate planning purposes? C. Evaluate the similarities and differences between trusts and corporations. In an attempt to protect income, which would be most suitable for a company? Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Use at least one outside source other than the textbook. Sources should be cited according to APA style. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Rubric Critical Elements Estate Planning: Minimizing Tax Liability Exemplary (100%) Meets \"Proficient\" criteria and uses relevant research to illustrate claims Estate Planning: Advantages Meets \"Proficient\" criteria and defense is well supported and logical Estate Planning: Succession Plan Meets \"Proficient\" criteria and description is exceptionally clear and contextualized Describes the company's succession plan and whether or not it aligns with the company's vision Estate Planning: Strategy Meets \"Proficient\" criteria and defense is well supported and logical Determines which strategy would be most effective and defends response Meets \"Proficient\" criteria and cites sources that are aligned with conclusion Meets \"Proficient\" criteria and cites specific, relevant examples to establish a robust context for the determination Draws a conclusion about the purpose for the trust based on the research of the company Determines why a small business owner would want to set up a trust and how it could be used for estate-planning purposes Meets \"Proficient\" criteria and uses concrete examples to substantiate claims Evaluates the similarities and differences between trusts and corporations and determines which would be most suitable to protect income Trusts: Conclusion Trusts: Estate Planning Purposes Trusts: Protect Income Proficient (90%) Explains how estate planning differs from a partnership to a corporation in terms of minimizing tax liability Determines the advantages of setting up a business as a corporation versus a partnership for estate planning purposes and defends response Needs Improvement (55%) Explains how estate planning differs from a partnership to a corporation but not in terms of minimizing tax liability Determines the advantages of setting up a business as a corporation versus a partnership for estate planning purposes, but does not defend response or defense is weak or cursory Describes the company's succession plan, but does not describe if it aligns with the company's vision or description is cursory or inaccurate Determines which strategy would be most effective, but does not defend response or defense is weak or cursory Draws a conclusion about the purpose for the trust, but conclusion is cursory or inaccurate Determines why a small business owner would want to set up a trust, but does not determine how it could be used for estateplanning purposes or determination is cursory or inaccurate Evaluates the similarities and differences between trusts and corporations, but does not determine which would be most suitable to protect income or determination is inaccurate Not Evident (0%) Does not explain how estate planning differs from a partnership to a corporation Value 12.75 Does not determine the advantages of setting up a business as a corporation versus a partnership 12.75 Does not describe the company's succession plan 12.75 Does not determine which strategy would be most effective 12.75 Does not draw a conclusion about the purpose for the trust 13 Does not determine why a small business owner would want to set up a trust 13 Does not evaluate the similarities and differences between trusts and corporations 13 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 10 100% Running head: BUSINESS ENTITIES - PARTNERSHIPS AND CORPORATIONS Business entities - partnerships and corporations Prof: Piper ACC 630 Ismail Amar Southern New Hampshire University June 14, 2016 1 BUSINESS ENTITIES - PARTNERSHIPS AND CORPORATIONS 2 Loss in the Lawsuit Since there is an expected chance of loss in the lawsuit, both the corporation and partnership firm would have to create a provision for the lawsuit. This will lead to the reduction in the profit of the company. Therefore, for the Sears Company, the probable damages of $2000000 should be shown in the financial statement through reducing net income and increasing liabilities. This would further affect the Sears financial status which is constantly deteriorating on every financial reporting. This will scare investors because not many would be willing to invest in a non-profitable company due to fear of losing their investment. b) There exist differences between the two types of companies in the way it deals with public disclosure. For a public United States company that trades on a United States stock exchange is usually required to file periodic earnings reports with the Securities and Exchange Commission (Carney W. J, 2006). This information is also made available to shareholders and the public. Partnerships, on the other hand, are private companies and are not required to disclose their financial information to anyone since they do not trade stock on a stock exchange. The information required when reporting for a corporate company include the director's particular, shareholding pattern, public holding, corporate social responsibility as well as the accounting standard followed or not. On the other hand, the partnership firm should provide information on the particulars of partners, share in the partnership, salary and interest paid to partners and any change in Capital. Therefore, Sears been a public traded corporation should disclose the probable loss of $2000000 on account of the lawsuit and be given in the notes to accounts of the company depending on the circumstances of the cases as on the date of disclosure. BUSINESS ENTITIES - PARTNERSHIPS AND CORPORATIONS 3 c) Based on the company's profit and loss sharing agreement, the shareholders are only liable to the extent of the value of their shares and not more than that. Hence, if the company lawsuit damages of $2000000 exceed their shares, the shareholders will only pay the value equivalent to their shares while the remaining value would be paid by the company. d) Yes, the partners could be held personally liable, however, their liability will depend on the form of partnership and circumstances of the case. For example, in limited partnership general partners are personally responsible for the liabilities while limited partners can only lose their status and be held personally responsible for business liabilities if they are found to be actively involved in the management of the business (Ireland, P. 2010). BUSINESS ENTITIES - PARTNERSHIPS AND CORPORATIONS 4 References Carney W. J, & Emory L. J., (2006). Costs of Being Public after Sarbanes-Oxley: The Irony of Going Private. Ireland, P. (2010). Limited liability, shareholder rights and the problem of corporate irresponsibility. Cambridge Journal of Economics