Question 16 Organizational Costs. In the process of incorporating a business, ABC corporation incurs organizational costs. ABC was incorporated on June 8, 2019. It officially began business on September 2, 2019. It uses a calendar year-end. The officers have asked that ABC take the maximum deduction as allowed under the tax law. a. How much can ABC deduct in 2019 if the total organizational costs are $45,000? b. How much can ABC deduct in 2019 if the total organizational costs are $52,000? c. How much can ABC deduct in 2019 if the total organizational costs are $75,000?

Question 16 Organizational Costs. In the process of incorporating a business, ABC corporation incurs organizational costs. ABC was incorporated on June 8, 2019. It officially began business on September 2, 2019. It uses a calendar year-end. The officers have asked that ABC take the maximum deduction as allowed under the tax law. a. How much can ABC deduct in 2019 if the total organizational costs are $45,000? b. How much can ABC deduct in 2019 if the total organizational costs are $52,000? c. How much can ABC deduct in 2019 if the total organizational costs are $75,000?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 27CE

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