ACC 620 Milestone Two Guidelines and Ru
ic
Prompt: In the first milestone, you addressed stockholders’ equity and income measurement
evenue 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
esponse.
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, one-
inch margins, and at least three sources cited in APA format.
Critical Element Exemplary Proficient Needs Improvement Not Evident Value
Income Taxes:
Corporate Taxes
Meets “Proficient” criteria, and
defense is well supported with
quantitative evidence
(100%)
Accurately describes the effect
on the company’s income
statement and balance sheet if
Congress voted to eliminate
corporate taxes, and defends
esponse
(90%)
Describes the effect on the
company’s income statement
and balance sheet if Congress
voted to eliminate corporate
taxes, but does not defend
esponse, description contains
inaccuracies, or defense is
illogical
(70%)
Does not describe the effect on
the company’s income
statement and balance sheet
(0%)
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%)
Calculates the income tax rate
for the company and
determines the effect an
increase in income would have
on the company, but
calculation or determination
contains inaccuracies
(70%)
Does not calculate the income
tax rate for the company
(0%)
14
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%)
Determines the effects on the
alance sheet and income
statement, but determination
contains inaccuracies, does not
justify determination, or
justification is illogical
(70%)
Does not determine the effects
on the balance sheet and
income statement
(0%)
13
Income Taxes:
Foreign Taxes
Accurately determines how
much the company paid in
foreign taxes last year and
what percentage of its income
was United States versus
foreign
(100%)
Determines how much the
company paid in foreign taxes
last year and what percentage
of its income was United States
versus foreign, but
determination contains
inaccuracies
(70%)
Does not determine how much
the company paid in foreign
taxes last year
(0%)
13
Pensions: Pension
Plan
Meets “Proficient” criteria and
shows a nuanced
understanding of the
company’s decision-making
ationale
(100%)
Discusses the type of pension
plan the company has and the
easons why the company has
chosen that plan
(90%)
Discusses the type of pension
plan the company has, but
does not discuss the reasons
why the company chose that
plan
(70%)
Does not identify the type of
pension plan the company has
(0%)
14
Pensions: Effect Meets “Proficient” criteria, and
defense is well supported with
concrete examples
(100%)
Accurately determines the
effect of the pension plan on
the company’s financial
statements and defends
esponse
(90%)
Determines the effect of the
pension plan on the company’s
financial statements, but
determination lacks accuracy,
does not defend
determination, or defense is
weak or illogical
(70%)
Does not determine the effect
of the pension plan on the
company’s financial statements
(0%)
13
Pensions: Other
Options
Meets “Proficient” criteria and
is well supported with concrete
examples
(100%)
Evaluates other types of
etirement plans available and
determines which would be
appropriate for the company
(90%)
Evaluates other types of
etirement plans available, but
does not determine which
would be appropriate for the
company
(70%)
Does not evaluate other types
of retirement plans available
(0%)
13
Articulation of
Response
Submission is free of e
ors
elated to citations, grammar,
spelling, syntax, and
organization and is presented
in a professional and easy-to-
ead format
(100%)
Submission has no major e
ors
elated to citations, grammar,
spelling, syntax, or organization
(90%)
Submission has major e
ors
elated to citations, grammar,
spelling, syntax, or organization
that negatively impact
eadability and articulation of
main ideas
(70%)
Submission has critical e
ors
elated to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
(0%)
7
Total 100%