Question: Need help with this problem. It has to do with Accounting, Corp. Tax. Thank you. eBook Tax Drill - Organizational and Startup Costs ndlewood LLC
eBook Tax Drill - Organizational and Startup Costs ndlewood LLC started business on September 1, 2016 and adopted a calendar year. During 2016, Candlewood incurred $6,500 in legal ees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs If required, round any division to five decimal places and use in subsequent computations. Round your final answers to the nearest dollar In 2016, the LLC may deduct $ as organizational expenses and $ as startup expenses
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
