Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the followingexpenditures associated with getting the corporation started:ExpenseAttorney fees for articles of incorporationMarch 1-March 30 wagesMarch 1-March 30 rentStock issuance costs:April 1-May 30 wages.Note: Leave no answer blank. Enter zero if applicable.DateFebruary 10March 30Harch 30April 1May 30Start-up costs amortized$2,850Organizational expenditures amortized $ 32.000Amount$ 37,0005,3502,50031,00013,375Problem 2-73 Part c (Algo)c. What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs foryear 1 (not including the amount determined in part (b)]?Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.

Start up cost is the cost which is required to start a business. It is incurred before starting of…

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: Expense Attorney fees for articles of incorporation March 1-March 30 wages March 1-March 30 rent Stock issuance costs April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. Date February 10 March 30 March 30 April 1 May 30 Start-up costs amortized S 2,850 Organizational expenditures amortized $ 32.000 Amount $ 37,000 5,350 2,500 31,000 13,375 Problem 2-73 Part c (Algo) c. 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 determined in part (b)]? Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.

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: Expense Attorney fees for articles of incorporation March 1-March 30 wages March 1-March 30 rent Stock issuance costs April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. Date February 10 March 30 March 30 April 1 May 30 Start-up costs amortized S 2,850 Organizational expenditures amortized $ 32.000 Amount $ 37,000 5,350 2,500 31,000 13,375 Problem 2-73 Part c (Algo) c. 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 determined in part (b)]? Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 3DQ

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deductible)? 73. 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: Expense Attorney fees for articles of incorporation February 10 March 1-March 30 wages March 30 March 1-March 30 rent March 30 Stock issuance costs April 1 April 1-May 30 wages May 30 Date Amount $32,000 4,500 2,000 20,000 12,000 a) What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? b) What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)? c) 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 determined in part (b)]? d) What would be the total allowable organizational expenditures if Nicole…
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