Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.j 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 Attorney fees for articles of incorporation March 1 - March 30 wages March 1 - March 30 rent Stock issuance costs April 1 - May 30 wages February 10 March 30 March 30 April 1 May 30 Amount 44,50e 7,750 3,250 16,000 19,375 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Answer is complete and correct $11,000 Start-up costs Organizational expenditures $ 44,500

Explanation / Answer

In answer C after deducting the expense upto the limit of 5000 , remaining expense of startup and organisational exp will be amortized over a period of 180 months.

startup cost = (11000 - 5000) / 180 * 12 = 400( for 12 month)

Organisational exp = ( 44500 - 5000) / 180 * 12 = 2633

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