Collaborate with other students by using this forum to discuss the optimal tax structure for each of the following companies: Bradshaw, Gall, Cooke and Company Mark Bradshaw, Cynthia Gall and Grace Cook are all CPAs.

Collaborate with other students by using this forum to discuss the optimal tax structure for each of the following companies:

Bradshaw, Gall, Cooke and Company

Mark Bradshaw, Cynthia Gall and Grace Cook are all CPAs. They wish to form a company so that they can practice accounting and tax services. Each will contribute money in exchange for an interest in the company. In addition, Grace will personally loan money to the company to cover additional start-up costs. The company will obtain loans from the bank as necessary to cover any other costs. Each individual will be responsible for their own book of business and will sign audit, compilations and review engagements as well as tax returns. They will have anywhere from 10 15 employees depending on the time of year. Cynthia will sign and make legal decisions on behalf of the company but will only be able to do so subject to agreement by the other owners.

Superior Air Control Company

Brian, Tony and Rick are starting a manufacturing company in the HVAC industry. The company will manufacture pipes that seal extraordinarily well so that air does not leak out allowing for superior energy efficiency. The pipes will be sold to the home and commercial building industry. Tony, an engineer, will work for the company and will provide the value of his services in exchange for an ownership interest. Brian, a salesman, and Rich, the President ,will both work for the company as well but will contribute money in exchange for an ownership interest. Rich will have the ability to sign on behalf of the company and make legal decisions for the company such as entering into contracts, taking out loans and more. The company will borrow from the bank for capital equipment expenditures and operations.