Question: 2 . On May 1 , Rick formed a new corporation, Red, Inc. He spent $ 6 , 0 0 0 in legal fees and

2 .

On May

1,

Rick formed a new corporation, Red, Inc. He spent $

6, 000

in legal fees and paid the state $

900

in incorporation fees. Red, Inc. started operating its business on May

10 .

How much, if any, can Rick or Red, Inc. deduct of these organizational fees? In answering this case, use an online tax service with only the Internal Revenue Code database selected. State your keywords and which online tax service you used to arrive at your answer.

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