CRITICAL THINKING RUBRIC QUESTIONS
YOU MUST SUBMIT ANSWERS TO THESE QUESTIONS TO RECEIVE A GRADE ON THE MID-TERM!
IT IS IN YOUR BEST INTEREST TO REVIEW THE CRITICAL THINKING RUBRIC
BEFORE COMPLETING THIS DOCUMENT BECAUSE IT COUNTS AS 25% OF THE MID-TERM GRADE.
YOU MAY ADD SPACES BETWEEN THESE QUESTIONS FOR YOUR ANSWERS, AND INCLUDE ANY COMPUTATIONS NEEDED IN A SEPARATE EXCEL DOCUMENT.
- Personal perspectives and position: What is your experience and knowledge level regarding corporate/business taxes? How did your personal tax experience and knowledge help you in completing this tax return?
- Other salient perspectives and positions: What resources did you use in preparing this tax return? Provide references to page numbers in your textbook and specific addresses within the IRS website.
- Key assumptions: How did you decide what accounting method the corporation used for tax purposes? How did you decide who the corporation owners were and how much of the corporation each of the shareholders owned? Please explain.
- Quality of evidence: Show your work in an Excel attachment for the following line item: Form 1120 Line 31. (Remember, the tax is computed as taxable income multiplied by the corporate tax rate. If your tax amount calculated in your Excel worksheet is slightly different from the tax amount calculated by the software, just make a note of it on the spreadsheet. It may be a rounding difference, but you should not be off by too much.)
- Conclusions, implications, and consequences: From your answers to the line items in this tax return, is this corporation in a position to receive a refund from the IRS or to pay additional tax to the IRS?
- Identify criteria for assessing alternatives: Based on the amount owed or to be refunded, what are the key tax issues that should be considered during the next year? List at least two key tax issues and explain each. (Think outside the box; this is not given in the problem.)
- Applies criteria to alternatives: Based on these key tax issues, what are the taxpayer's options for the next year? Identify options for each tax issue listed. (Again, think outside the box.)
- Evaluates results: As a tax preparer, what would you recommend this client to do next year based on the options identified?