tely deductible)?useluumm 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-May 30 wages Date April 1 May 30 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 started a sole proprietorship instead of a corporation? LO 2-4
tely deductible)?useluumm 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-May 30 wages Date April 1 May 30 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 started a sole proprietorship instead of a corporation? LO 2-4
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 24CE
Related questions
Question
100%
![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 started a
sole proprietorship instead of a corporation?
LO 2-4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4b353e4-6b58-4a4e-9bba-1d16c41c2da2%2Fc4ae28de-dc6a-46af-a397-852941c7a1c1%2Fcijacov_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 started a
sole proprietorship instead of a corporation?
LO 2-4
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