Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.) a. She incurred start-up costs of $3,900. Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.) a. She incurred start-up costs of $3,900. Amount of start-up costs immediately expensed b. She incurred start-up costs of $44,500. Amount of start-up costs immediately expensed c. She incurred start-up costs of $53,200. Amount of start-up costs immediately expensed d. She incurred start-up costs of $64,750. Amount of start-up costs immediately expensed e. How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?

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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Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.)

a. She incurred start-up costs of $3,900.

Amount of start-up costs immediately expensed

b. She incurred start-up costs of $44,500.

Amount of start-up costs immediately expensed

c. She incurred start-up costs of $53,200.

Amount of start-up costs immediately expensed

d. She incurred start-up costs of $64,750.

Amount of start-up costs immediately expensed

e. How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?

Costs Incurred	Amount
$3,900
$44,500
$53,200
$64,750

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