2. WIilliam Corporation was formed and began business on August 1. It incurred the following organizational expenditures: expenses in connection with stock issuance of $5,000; legal fees for drafting corporate documents of $20,000; asset transfer fees of $19,000; accounting fees of $33,000; and fees paid to the state of incorporation of $1,000. Compute the organizational expenditures deduction for the current year (to the nearest dollar). Group of answer choices $6,000 $1,000 $2,472 $5,000 None of the answers are correct.

2. WIilliam Corporation was formed and began business on August 1. It incurred the following organizational expenditures: expenses in connection with stock issuance of $5,000; legal fees for drafting corporate documents of $20,000; asset transfer fees of $19,000; accounting fees of $33,000; and fees paid to the state of incorporation of $1,000. Compute the organizational expenditures deduction for the current year (to the nearest dollar). Group of answer choices $6,000 $1,000 $2,472 $5,000 None of the answers are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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