Fish Corporation, an accrual method, calendar year C corporation, was formed and began business on November 1, of the current year. Fish incurred the following expenses during its first year of operations (November 1 – December 31, current year). Fish Corporation Expenses Expenses of temporary directors and organizational meetings $23,100 Fee paid to state of incorporation $3,300 Expenses for printing and sale of stock certificates $12,100 Legal services for drafting the corporate charter and bylaws $28,000 What amount may be deducted as organizational expenditures in the current year? a.$1,204.44 b.$600.00 c.$1,197.78 d.$1,332.22
Fish Corporation, an accrual method, calendar year C corporation, was formed and began business on November 1, of the current year. Fish incurred the following expenses during its first year of operations (November 1 – December 31, current year). Fish Corporation Expenses Expenses of temporary directors and organizational meetings $23,100 Fee paid to state of incorporation $3,300 Expenses for printing and sale of stock certificates $12,100 Legal services for drafting the corporate charter and bylaws $28,000 What amount may be deducted as organizational expenditures in the current year? a.$1,204.44 b.$600.00 c.$1,197.78 d.$1,332.22
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please solve the question below and select one of the multiple-choice options (a-d).
Fish Corporation, an accrual method, calendar year C corporation, was formed and began business on November 1, of the current year. Fish incurred the following expenses during its first year of operations (November 1 – December 31, current year).
Fish Corporation Expenses
| Expenses of temporary directors and organizational meetings | $23,100 |
| Fee paid to state of incorporation | $3,300 |
| Expenses for printing and sale of stock certificates | $12,100 |
| Legal services for drafting the corporate charter and bylaws | $28,000 |
What amount may be deducted as organizational expenditures in the current year?
a.$1,204.44
b.$600.00
c.$1,197.78
d.$1,332.22
PLEASE PROVIDE CORRECT ANSWER
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education