During 2020, Jeff has the following startup costs for his new lawn-care business: · Employee Training & Orientation Costs: $5,000 · Legal and Accounting fees: $8,000 · Market Research and Surveys: $4,000 Jeff’s business begins operations on January 1, 2021. Determine the amount that Jeff should deduct and when. Group of answer choices $5,000 in the 2020 tax year. $5,800 in the 2020 tax year. $5,800 in the 2021 tax year. $17,000 in the 2021 tax year.
During 2020, Jeff has the following startup costs for his new lawn-care business: · Employee Training & Orientation Costs: $5,000 · Legal and Accounting fees: $8,000 · Market Research and Surveys: $4,000 Jeff’s business begins operations on January 1, 2021. Determine the amount that Jeff should deduct and when. Group of answer choices $5,000 in the 2020 tax year. $5,800 in the 2020 tax year. $5,800 in the 2021 tax year. $17,000 in the 2021 tax year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2020, Jeff has the following startup costs for his new lawn-care business:
· Employee Training & Orientation Costs: $5,000
· Legal and Accounting fees: $8,000
·
Jeff’s business begins operations on January 1, 2021. Determine the amount that Jeff should deduct and when.
Group of answer choices
$5,000 in the 2020 tax year.
$5,800 in the 2020 tax year.
$5,800 in the 2021 tax year.
$17,000 in the 2021 tax year.
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