A new vintage clothing store began operating within 2020. It is organized as a corporation, operates over a calendar year tan period, and opened its doors (began business) on April 1, 2020. Assume the total amount of start-up costs for the company was $42.200 and for organizational expenditures was $32,300. What amount of these organizational expenditures can be immediately expensed in 2020? Of the portion of these organizational expenditures that could not be immediately expensed, how much amortization expense can the business claim for 20307 O1. For organizational expenditures: $0 immediately expensed and $1,615 in amortization expense in 2020 OI. None of the answers given here. Simmediately expensed and $3,589 in amortization expense in 2020.
A new vintage clothing store began operating within 2020. It is organized as a corporation, operates over a calendar year tan period, and opened its doors (began business) on April 1, 2020. Assume the total amount of start-up costs for the company was $42.200 and for organizational expenditures was $32,300. What amount of these organizational expenditures can be immediately expensed in 2020? Of the portion of these organizational expenditures that could not be immediately expensed, how much amortization expense can the business claim for 20307 O1. For organizational expenditures: $0 immediately expensed and $1,615 in amortization expense in 2020 OI. None of the answers given here. Simmediately expensed and $3,589 in amortization expense in 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question 20
Question 20 of 28
A new vintage clothing store began operating within 2020. It is organized as a corporation, operates over a calendar year tax period,
and opened its doors (began business) on April 1, 2020. Assume the total amount of start-up costs for the company was $42.200 and for
organizational expenditures was $32,300
What amount of these organizational expenditures can be immediately expensed in 2020? Of the portion of these organizational
expenditures that could not be immediately expensed, how much amortization expense can the business claim for 2020?
O1. For organizational expenditures: 50 immediately expensed and $1,615 in amortization expense in 2020.
OIL. None of the answers given here.
O. For organizational expenditures: $0 immediately expensed and $3,589 in amortization expense in 2020.
ON. For organizational expenditures: $5,000 immediately expensed and $1,365 in amortization expense in 2020.
OV. For organizational expenditures. $5,000 immediately expensed and $1,820 in amortization expense in 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d758c30-aeb5-4450-971e-b3123bb20140%2Ff7c6ffde-ef75-4d6f-a737-245f29689abc%2Fuqt2vnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 20
Question 20 of 28
A new vintage clothing store began operating within 2020. It is organized as a corporation, operates over a calendar year tax period,
and opened its doors (began business) on April 1, 2020. Assume the total amount of start-up costs for the company was $42.200 and for
organizational expenditures was $32,300
What amount of these organizational expenditures can be immediately expensed in 2020? Of the portion of these organizational
expenditures that could not be immediately expensed, how much amortization expense can the business claim for 2020?
O1. For organizational expenditures: 50 immediately expensed and $1,615 in amortization expense in 2020.
OIL. None of the answers given here.
O. For organizational expenditures: $0 immediately expensed and $3,589 in amortization expense in 2020.
ON. For organizational expenditures: $5,000 immediately expensed and $1,365 in amortization expense in 2020.
OV. For organizational expenditures. $5,000 immediately expensed and $1,820 in amortization expense in 2020.
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