Which of these cost methods does the instructor suggest a pizza business might use, given the variability of the cost of cheese?

Howdo I create a financial statement or document that a business mightuse to account for losses, damaged goods, and stoleninventory.

1. Compare and contrast the at-risk rules and passive activitylimits. Discuss the purpose for each, and suggest as least two (2)tax-planning strategies for ensuring that the IRS allows passivelosses in order to reduce your tax liability. Provide support foryour suggestion.

2. Imagine that you are in the process of creating a newbusiness structure and have to choose between a personal servicecorporation and one that is closely held. Consider the taxdeductions, at-risk rules, and passive loss limitations, andrecommend the type of structure that has the greatest potential tominimize your tax liability. Defend your position.

Part A 1. The text says that Toyota has focused on quality asits operations capability. Describe two (2) ways that Toyota'soperations might have changed if it had focused on low cost insteadof quality. 2. FedEx and the U.S. Postal Service compete for manyof the same customers. Describe two (2) ways that their strategiesfor attracting customers are different. Part B Mary Ann has alwaysloved to cook and is interested in starting a catering business.Being aware of the failure rate of new businesses, she isconsidering buying an existing catering business that is up forsale. The current owners claim that the business is highlyprofitable, but Mary Ann has her doubts. She wonders why the ownerswould be so interested in selling the business if it is such amoney maker. Furthermore, the price that they are asking seems highto Mary Ann. Without any formal training in accounting, Mary Annasks a friend, Rolanda, for advice. 1. Rolanda suggests that MaryAnn may benefit from the services of a noncertified publicaccountant. Describe two (2) types of services that could beprovided. 2. The auditor's report has come back and Mary Ann isreviewing the financial statements. The current balance sheet showsthat the business has more liabilities than assets. Why would thisexplain the need to sell the business? Provide two (2) supportingfacts. 3. Rolanda suggests that, even with the negative owners'equity, this business might still be worth buying. Describe one (1)other indicator, a financial term found within the auditor's reportthat they should consider for this decision.