ACC 620 Milestone Two Guidelines and Rubric

Prompt: In the first milestone, you addressed stockholders’ equity and income measurement/revenue recognition for your portfolio. In the second milestone for your final project, you will continue work on your portfolio by completing critical elements III and V. You will be addressing income taxes and pensions. III. Income Taxes A. If Congress voted to eliminate corporate taxes, what would be the effect on your company’s income statement and balance sheet? Defend your response. B. Calculate the income tax rate for your chosen company. What effect will an increase in income of $2,000,000 have on your company? C. What are the effects on the balance sheet and income statement? Justify your response. D. How much did your company pay in foreign taxes last year? What percentage of its income is United States vs. foreign? V. Pensions Address the following elements in the form of a memo to your CEO: A. From your company’s financial information, what type of pension plan does it have? Discuss the reasons why your company has chosen this particular plan. B. What was the effect of the pension plan on your company’s financial statements? Defend your response. C. Your CEO has informed you—the controller of your company—that the board of directors has made the decision to look at other options of types of retirement plans. Investigate what other alternatives would be available, and determine which would be appropriate for your particular company. Guidelines for Submission: Your paper must be submitted as a 2–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and at least three sources cited in APA format. 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. Critical Element Income Taxes: Corporate Taxes Exemplary Meets “Proficient” criteria, and defense is well supported with quantitative evidence (100%) Proficient Accurately describes the effect on the company’s income statement and balance sheet if Congress voted to eliminate corporate taxes, and defends response (90%) Needs Improvement Describes the effect on the company’s income statement and balance sheet if Congress voted to eliminate corporate taxes, but does not defend response, description contains inaccuracies, or defense is illogical (70%) Not Evident Does not describe the effect on the company’s income statement and balance sheet (0%) Value 13 Income Taxes: Increase in Income Meets “Proficient” criteria, and determination is well supported with quantitative evidence (100%) Accurately calculates the income tax rate for the company and determines the effect an increase in income would have on the company (90%) Income Taxes: Effects Meets “Proficient” criteria, and justification is well supported with quantitative evidence (100%) Accurately determines the effects on the balance sheet and income statement and justifies response (90%) Income Taxes: Foreign Taxes Pensions: Pension Plan Pensions: Effect Accurately determines how much the company paid in foreign taxes last year and what percentage of its income was United States versus