Accounting

For Assignment 1, you will conduct research on https://www.irs.gov, consult your textbook, and refer to other similar, reputable resources on taxation. Your goal is to compare the three major forms of corporate organizations: partnerships, s-corporations, and corporations. You will then select a domestic organization, identify its entity type, and describe how the organization’s tax methods are detailed in its financial report. To complete Assignment 1, write a four to five (4-5) page paper in which you do the following: Compare and contrast the tax rules and treatment applicable to those three forms of organization and the major way in which the tax treatment affects the shareholders or partners. Explain at least two reasons why a business owner might opt for one form of organization over another. Provide support for your rationale. Identify two sources of tax guidance (e.g. IRS code, Revenue Procedure) for each form of organization and how it defines a component of the tax policy for that form of organization. Research an organization by identifying its entity type (corporation, s-corporation, or partnership) and describe how that organization’s tax methods are detailed in their financial reports. Go to https://research.strayer.edu to locate at least three quality academic resources for this assignment. Note: Wikipedia and similar websites do not qualify as academic resources. Your assignment must follow these formatting requirements: This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details. 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 source list are not included in the required assignment page length.  The specific course learning outcome associated with this assignment is: Evaluate the tax rules and treatment applicable to organizations and their impact on shareholders.

Instructions Multicultural Team This course has major project assignments due in Week 3 and Week 5. It will take more than a week’s effort to adequately complete them. Plan time to start the research and work on those assignments earlier than the week in which they are due. Recently, you have been assigned the task of assembling a multicultural, team in your organization. The purpose of the team is to design and implement a leadership development and succession process for the organization.  Based on research using the course text and other scholarly materials: Analyze the stages of group development the teams should expect to experience. At each stage, make recommendations that will help move the team into the next stage. Multicultural project teams often face problems with communication, expectations, and values. How do you think some of these challenges can be overcome? Explain some of the group decision-making challenges the team may experience and recommend ways to overcome them. Discuss at least three recommendations to help make these teams effective.

A.  Explain the difference between tax avoidance and tax evasion referencing sources besides the given “Cases Citing Gregory” attachment. 1.  Discuss two examples of tax avoidance using two cases from the “Cases Citing Gregory” attachment. 2.  Discuss two examples of tax evasion using two different cases from the “Cases Citing Gregory” attachment. B.  Discuss how the cases Yung v. Grant Thornton LLP and Agilent Technologies Inc. v. Department of Revenue (found in the web links section) characterize tax avoidance as either tax liability minimization or tax evasion. C.  Explain why tax avoidance can be classified as tax liability minimization or tax evasion. D.  Acknowledge sources, using APA-formatted in-text citations and references, for content that is quoted, paraphrased, or summarized. E.  Demonstrate professional communication in the content and presentation of your submission. Note: If you have not yet read the Gregory v. Helvering case, please do so before continuing with this task. A link to the case is provided https://www.leagle.com/decision/inkyco20181217141 https://www.leagle.com/decision/1935758293us4651704 https://www.leagle.com/decision/incoco20171102081

Look closely at the published financial statements for your company—Balance Sheet, Income Statement, Statement of Retained Earnings, & Statement of Cash Flows. Elaborate on each term. Do you find them understandable? Can you see how they all fit together? List three (3) items that stand out to you and discuss why. Company: https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_EL_2019.pdf

Pick a large company that does business in your community and view their financial results. For the most recent year, list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? Is your company a profitable company? How can you tell?

Briefly describe what is the fair value option. Is this option more useful than the historical cost for certain types of assets and liabilities?

A.  Explain the difference between tax avoidance and tax evasion referencing sources besides the given “Cases Citing Gregory” attachment. 1.  Discuss two examples of tax avoidance using two cases from the “Cases Citing Gregory” attachment. 2.  Discuss two examples of tax evasion using two different cases from the “Cases Citing Gregory” attachment. B.  Discuss how the cases Yung v. Grant Thornton LLP and Agilent Technologies Inc. v. Department of Revenue (found in the web links section) characterize tax avoidance as either tax liability minimization or tax evasion. C.  Explain why tax avoidance can be classified as tax liability minimization or tax evasion. D.  Acknowledge sources, using APA-formatted in-text citations and references, for content that is quoted, paraphrased, or summarized. E.  Demonstrate professional communication in the content and presentation of your submission. Note: If you have not yet read the Gregory v. Helvering case, please do so before continuing with this task. A link to the case is provided https://www.leagle.com/decision/inkyco20181217141 https://www.leagle.com/decision/1935758293us4651704 https://www.leagle.com/decision/incoco20171102081

Define and then compare and contrast  decentralized versus centralized organizations. Tell how they work and how they measure the performance of those charged with management. Share your experience with either or both types of organizations. Which type do you feel results in better leadership and management of the organization. I also need to reply 2 of my classmates:  —————————————————————————————————————————— 1Post classmate:  Definition of Decentralized Organizations  Decentralized organizations are companies that delegate responsibility and decision making to different managerial responsibilities rather than concentrating decision making power at the top tier. As such, the lower level management has greater autonomy and independence in executing their functions at the sub-unit level (Noreen, Brewer & Garrison, 2020). It is advantageous in that it leads to informed and timely decisions as well as a faster approach to the development of the management unit as a whole. Additionally, high employee morale and improved management focus are other benefits of the approach. Sub optimization is the main demerit as specific actions are beneficial to a subunit but detrimental to the company.  How Decentralized Organizations Work In decentralized firms, each department forms a subunit of the organization which encompasses the whole unit. At the company level, the heads of department form the part of the lower level management tier. Decision making and responsibility is delegated to the subunit with independence and autonomy (Noreen, Brewer & Garrison, 2020). There are streamlined efforts for goal congruence and managerial endeavors. Notably, every responsibility center creates its system of operation with a feedback circuit for information and strategic purposes. The system is evaluated in terms of efficiency or productivity compared with allocated resources and effectiveness in achieving set goals.  How they Measure Management Performance Performance appraisal of decentralized companies is difficult because responsibility is delegated across the organization. The process entails the implementation of measurement tools with regards to results. Tracking of the results is followed to the specific individuals responsible for the result (Indjejikian & MatÄjka, 2012). A good measure is a return on investment, which is gauged via the bookkeeping system or the accounting system. It is successful as expenses along with incomes are divided and assigned to particular responsibility centers and projects, respectively. Another tool used for measuring management performance is customer satisfaction. It uses market share data as well as customer retention data.  References Indjejikian, R., & MatÄjka, M. (2012). Accounting Decentralization and Performance Evaluation of Business Unit Managers. The Accounting Review, 87(1), 261-290. Retrieved August 24, 2020, from http://www.jstor.org/stable/41408068 Noreen, E.W., Brewer, P.C. & Garrison, R.H. (2020). Managerial Accounting for Managers. 5th Edition. New York, NY: McGraw Hill Education. 2nd post classmates:  Decentralized organizations are those, which have delegated operational and decision-making responsibilities to managers at different segments, divisions, or subunits. Pellinen, Teittinen & Järvenpää (2016) define decentralized organizations are those whose organizational structure fosters the delegated decision-making. In decentralized organizations, the performance of those charged with management is measured through an assessment of several key performance factors of their units. Key areas used to assess performance include the responsibility of their accounting systems, their division’s residual income, operating performance, balanced scorecard, and return on investment (ROI). These key strategies could help in ensuring better control over decentralized organizations.  Accounting responsibility is one critical way of assessing the performance of managers of the organization’s divisions. As per Lee & Yang (2011), this entails the assessment of cost, profit, and investment aspects and then linking them to the decision-making authority of the lower-level managers. According to Vejde & Sjökvist (2015), decentralized organizations grant managers with authority over costs, revenues, and investments when it comes to the operation of assets. Each manager can, therefore, be evaluated using their unit’s residual income and return on investment.  The performance of those charged with management can also be measured using operating performance. Pellinen, Teittinen & Järvenpää (2016) refer to operating performance as an evaluation of an entity’s performance using the minimum returns from the firm’s operating assets.  This is the net income, which investment centers earn, and it should be above the required minimum for the return of the operational assets (Lee & Yang 2011). This is essentially an adaptation from the residual income, and it determines the unit’s Economic Value Added index. Using a balanced scorecard essentially entails assessing the performance of the organization’s decentralized divisions using the aforementioned factors. From the works of Vejde & Sjökvist (2015), using the residual income to evaluate the performance of a unit means assessing the ability of managers to make profitable investments. This approach also entails the use of ROI in assessing the ability of managers to make sound investment decisions in line with the company’s strategy.  References: Lee, C. L., & Yang, H. J. (2011). Organizational structure, competition, and performance measurement systems and their joint effects on performance. Management accounting research, 22(2), 84-104. Pellinen, J., Teittinen, H., & Järvenpää, M. (2016). Performance measurement system in the situation of simultaneous vertical and horizontal integration. International Journal of operations & production management. Vejde, C., & Sjökvist, H. (2015). Consolidation of performance measurement in decentralized organizations.

Inherent Risk, Tests of Controls, and Substantive Procedures Overview In this assignment, you will prepare a 2–3 page professional document that addresses the requirements specified in the case. Fully address each requirement and include at least two current references to scholarly and/or authoritative sources. Instructions Specifically you will be required to: Calculate the required ratios for all given years. Identify and explain high inherent risk assertions. Analyze and draw conclusions about the nature and extent of tests of controls. Analyze and draw conclusions about the nature, timing, and extent of substantive procedures. Use at least two current, quality academic or authoritative sources in this assignment. Note: Wikipedia and similar websites do not qualify as quality scholarly and/or authoritative sources. Use the Strayer University Library to conduct your research.

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year. Required: Why would reclassifying period costs as product costs increase this period’s reported earnings? Do you believe Gallant’s actions are ethical? Why or why not?