Not secure invoker Week 13, Chapter 11 GHA Calculato Problem 11-5 Special Deduct

Question

Not secure invoker Week 13, Chapter 11 GHA Calculato Problem 11-5 Special Deductions and Limitations (LO 11.3) Beech Corporation, an accrual basis taxpayer, was organized and began business on July 1 of the current calendar tax year. During the current year, the corporation incurred the following State fees for incorporation Legal and accounting fees incident to organization Expenses for the sale of stock Organizational meeting expenses 500 1,800 2,100 750 Assuming that Beech Corporation does not elect to expense but chooses to amortize organizational expenditures over 15 years, calculate the corporation's deduction for its current calendar tax year Round per month calculation to two decimal places. Round your final answer to the nearest dollar New busnesses may incur organizational expenctures or start-p costs, or boih, prior to starting a busnen Crganeonal expernares are ecurred by pahershps, LLCA, and corporaons in the process of forming an ently in whch to operate a buniness

Explanation / Answer

So State fees for incorporation $500

Legal and accounting fees incident to organization $1,800

Organizational meeting expenses $750

TOTAL $3,050

$3,050/180 months = $16.94

So corporation’s deduction for its current calendar tax year is $16.94

15 years = 180 months

Note: The $2,100 for the sale of stock aren’t organizational expenditures and aren’t subject to amortization

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