Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...
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Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation March 1 - March 30 wages February 10 March 30 $ 33,500 4,300 March 1 - March 30 rent March 30 April 1 May 30 2,150 38,000 10,750 Stock issuance costs April 1 May 30 wages a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start-up costs Organizational expenditures b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)? Start-up costs expensed Organizational expenditures expensed c. What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 (not including the amount determined in part b)? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Start-up costs amortized Organizational expenditures amortized d. What would be the total allowable organizational expenditures if Nicole started a sole proprietorship instead of a corporation? Allowable organizational expenditure Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation March 1 - March 30 wages February 10 March 30 $ 33,500 4,300 March 1 - March 30 rent March 30 April 1 May 30 2,150 38,000 10,750 Stock issuance costs April 1 May 30 wages a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start-up costs Organizational expenditures b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)? Start-up costs expensed Organizational expenditures expensed c. What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 (not including the amount determined in part b)? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Start-up costs amortized Organizational expenditures amortized d. What would be the total allowable organizational expenditures if Nicole started a sole proprietorship instead of a corporation? Allowable organizational expenditure
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Answer a Startup costs are the cost incurred before the business began Startup costs March 1 March 3... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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