Nicole organized a new corporation. The corporation began business on April 1 of

Question

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:

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 it immediately expensed)? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)

Start-up costs amortized:

Organizational expenditures amortized:

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:

Explanation / Answer

Expense Date Amount Start-up costs amortized:   March 1 – March 30 wages        March 30 7,150   March 1 – March 30 rent        March 30 3,050 10,200 You are able to deduct up to $5,000 of your qualifying start-up costs, although the first-year deduction starts to phase-out when your expenses reach $50,000. Note: Incorporation expenses can not be deducted as startup costs. However, they may be deductible as incorporation expenses. Organizational expenditures amortized:   Stock issuance costs        April 1 20,000   April 1 – May 30 wages        May 30 17,875 37,875

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