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ACCT 560 Week 5 YouDecide Assignment: Final Advice to Alex Regarding Estate Planning
You are a practicing CPA at Gibbons, Johnson, & Tannun LLP. You recently received a new medium-sized client, ABI Inc., a construction company that builds and renovates office buildings. Since the tornado went through your town, ABI Inc. has had more projects than it can handle. ABI’s gross revenues for 20×2 were $12 million dollars, up from $150,000 in 20×1. Alex expects the revenues to grow by 30% for the next three years because the cleanup of the devastating tornado will take that long. You prepared ABI’s taxes in March of this year and Alex Lee, the owner of ABI Inc., has contacted you again for your advice. Jackson Lee, Alex’s oldest son, would like money to start a business and has said that this is a good avenue to avoid paying estate taxes after his father’s death. Alex’s wife died last year, and he has not given any money to his children in the past.
Alex Lee has contacted you for your advice regarding estate planning. His business has increased significantly this year, as has his personal wealth, and his three children (and eight grandchildren) all are asking him for money. Alex is looking for your guidance.
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