Problem $8-51($LO$.7)$

Martha was considering starting a new business. During her preliminary investigations related to the new venture, she incurred the following expenditures:

Salaries$$22,000$Travel$18,000$Professional fees$13,000$Interest on a short$-$term note$4,000$

Martha begins the business on July $1$ of the current year.

a$.$Classify for Martha the following expenditures as "Qualifies as a startup cost" or "Does not qualify as a startup cost".

$$Salaries

Qualifies as a startup cost Does not qualify as a startup costQualifies as a startup cost

$$Travel

Qualifies as a startup costDoes not qualify as a startup costQualifies as a startup cost

$$Professional fees

Qualifies as a startup costDoes not qualify as a startup costQualifies as a startup cost

$$Interest on a short$-$term note

Qualifies as a startup costDoes not qualify as a startup costDoes not qualify as a startup cost

b$.$If Martha elects $195$ treatment, enter the startup expenditure deduction for the current year.

In your calculations, round any division to $2$ decimal places. Round your final answer to the nearest dollar.

Current year startup expenditure deduction equals $fill in the blank $5.$ Problem $8-51($LO$.7)$

Martha was considering starting a new business. During her preliminary investigations related to the new venture, she incurred the following expenditures:

Martha begins the business on July $1$ of the current year.

a$.$ Classify for Martha the following expenditures as "Qualifies as a startup cost" or "Does not qualify as a startup cost".

b$.$ If Martha elects $\backslash (\backslash$S $195\backslash )$ treatment, enter the startup expenditure deduction for the current year.

In your calculations, round any division to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places. Round your final answer to the nearest dollar.

Current year startup expenditure deduction equals $\backslash (\backslash$$ $\backslash )$ X$.$