Problem $11-6$

Special Deductions and Limitations $($LO $11\mathrm{.}3)$

Beech Corporation, an accrual$-$basis, calendar$-$year taxpayer, was organized and began business in May of the current calendar tax year. During the current year, the corporation incurred the following expenses:

$[$State fees for incorporation,$$800$

Legal and accounting fees incident to organization $5,500$

Expenses for the sale of stock $2,500$

Organizational meeting expenses $1000$