In the process of incorporating a business, ABC corporation incurs organizational costs. ABC was incorporated on June 8, 2019. It officially began business on September 2, 2019. It uses a calendar year-end. The officers have asked that ABC take the maximum deduction as allowed under the tax law. a. How much can ABC deduct in 2019 if the total organizational costs are $45,000? b. How much can ABC deduct in 2019 if the total organizational costs are $52,000? c. How much can ABC deduct in 2019 if the total organizational costs are $75,000?
In the process of incorporating a business, ABC corporation incurs organizational costs. ABC was incorporated on June 8, 2019. It officially began business on September 2, 2019. It uses a calendar year-end. The officers have asked that ABC take the maximum deduction as allowed under the tax law. a. How much can ABC deduct in 2019 if the total organizational costs are $45,000? b. How much can ABC deduct in 2019 if the total organizational costs are $52,000? c. How much can ABC deduct in 2019 if the total organizational costs are $75,000?
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 43P
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