imagine that you are a certified public accountant cpa with anew client who needs an 3725973
Imagine that you are a certified Public Accountant (CPA) with anew client who needs an opinion on the most advantageous capitalstructure of a corporation. Your client formed the corporation inquestion to provide technology to the medical profession tofacilitate compliance with the Health Insurance Portability andAccountability Act (HIPAA). Your client is very excited because ofthe ability to secure several significant contracts with sufficientcapital. Rearch the advantages and disadvantages of debt forcapital formation versus equity for capital formation of acorporation. As a tax advisor for the client you are to write a oneor two page letter in which you compare the tax advantages of debtversus equity capital formation of the corporation to include thefollowing: 1) You should determine the fact based on your taxresearch. 2) You must identify the issues (questions). 3) Youshould locate the applicable authorities in tax regulations. 4) Youshould evaluate the authorities and choose those to follow wherethe authorities conflict in tax laws or regulations. 5) You shouldanalyze the facts in terms of the applicable authorities, and 6)You should communicate conclusions and recommendations to theclient based on your tax research.