Question: Ajax Inc was formed on April 25 and elected a
Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $11,200 to the attorney who drew up the articles of incorporation and $5,100 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $16,300 organizational costs on its first tax return?
Answer to relevant QuestionsMr. and Mrs. FB, a retired couple, decided to open a family restaurant. During March and April, they incurred the following expenses: Prepaid rent on commercial real estate ($2,100 per month from April through December) ...SEP, a calendar year corporation, reported $918,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporation’s records reveal the following information: • SEP incurred $75,000 ...In year 0, Jarmex paid $55,000 for an overhaul of a tangible operating asset. Jarmex has a 34 percent marginal tax rate and uses a 7 percent discount rate to compute NPV. a. Compute the after-tax cost of the overhaul if ...Last year, Manabee Inc. leased a computer system from ICS Company for five years. After using the system for only 10 months, Manabee realized that it was no longer adequate for its expanding business needs. As a result, ...Why do both corporate and non-corporate taxpayers prefer capital gains to ordinary income? Why is the preference stronger for non-corporate taxpayers?
Post your question