Candlewood LLC began its business on July 1, 2020; and it uses a calendar tax and an accounting year. Candlewood incurred $14,700 in legal fees for drafting the LLC's operating agreement and $7,350 in accounting fees for tax advice of an organizational nature, for a total of $22,050 of organizational costs. Candlewood also incurred $33,000 of preopening advertising expenses and $21,200 of salaries and training costs for new employees before opening for business, for a total of $54,200 of startup costs. The LLC desires to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. Compute Candlewood's deductions for the first year of its operations for: a. Organizational expenses: 6,137 X b. Startup expenses: $ 4,360 X

Candlewood LLC began its business on July 1, 2020; and it uses a calendar tax and an accounting year. Candlewood incurred $14,700 in legal fees for drafting the LLC's operating agreement and $7,350 in accounting fees for tax advice of an organizational nature, for a total of $22,050 of organizational costs. Candlewood also incurred $33,000 of preopening advertising expenses and $21,200 of salaries and training costs for new employees before opening for business, for a total of $54,200 of startup costs. The LLC desires to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. Compute Candlewood's deductions for the first year of its operations for: a. Organizational expenses: 6,137 X b. Startup expenses: $ 4,360 X

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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