15. Peeta Corporation, a calendar-year taxpayer, was organized and actively began operations on July 1, current...

 

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15. Peeta Corporation, a calendar-year taxpayer, was organized and actively began operations on July 1, current year, and incurred legal fees to obtain a corporate charter amounting to $40,000. Peeta wishes to deduct the maximum and amortize excess organizational costs over the shortest period allowed for tax purposes. What amount should Peeta claim as amortization of organizational expenses? A. $1,167. B. $2,167. C. $2,500. 16. If property is held for personal use and is later used for business or income-producing activity, which one of the following statements CORRECTLY identifies the depreciable basis? A. The fair market value (FMV) of the property on the date of the change in use. B. Original cost or other adjusted basis. eyaqet edi C. The lesser of the fair market value (FMV) of the property on the date of the change in use or the original cost or adjusted basis. 15. Peeta Corporation, a calendar-year taxpayer, was organized and actively began operations on July 1, current year, and incurred legal fees to obtain a corporate charter amounting to $40,000. Peeta wishes to deduct the maximum and amortize excess organizational costs over the shortest period allowed for tax purposes. What amount should Peeta claim as amortization of organizational expenses? A. $1,167. B. $2,167. C. $2,500. 16. If property is held for personal use and is later used for business or income-producing activity, which one of the following statements CORRECTLY identifies the depreciable basis? A. The fair market value (FMV) of the property on the date of the change in use. B. Original cost or other adjusted basis. eyaqet edi C. The lesser of the fair market value (FMV) of the property on the date of the change in use or the original cost or adjusted basis.

Answer rating: 100% (QA)

15 C2500 In the first year if total business cost is less than 50000 then they can claim 50... View the full answer