William Barnes is one of your clients who owns his construction company in the form of sole proprietorship. Bill has decided to change his business over to a regular corporation (C Corporation). Under the old proprietorship, Bill only had to understand the cash basis of accounting whenever his accountant communicated with him. Now he has tremendously increased his revenue, gross profit, operating profit, and net profit. As a result, his accountant is expressing to him that although his tax return (the 1120) will remain under the cash basis, his accounting books, for financial accounting purposes, will be under the accrual basis. Give your short comments and thoughts about what you would like to express to Bill concerning the following below questions.

1. What are some considerations that Bill will have to consider and have analyzed?

2. Are there any social and or ethical responsibilities

3. Write an example of a proper written communication that you would use, as a potential tax consultant, to communicate with Bill. Keep the communication to about three paragraphs and write in proper format that is conducive for a tax practitioner that is communicating with a client with little or no tax or tax concepts understanding.

4. Pick a position and defend that position for Bill that is based on tax concepts learned in this course.