Mr. Benedict is starting Belmont Abbey Corporation (BAC). Benedictspends $4,000 on salaries to help startup BAC. Mr. Benedict also spends$5,000 for a CPA (file documents), $4,000 for a lawyer (file documents),and $3,000 for printing and selling stock shares. How much can Mr.Benedict deduct in the current year if the business starts on July 17?A. $5,133.33B. $5,366.66C. $9,133.33D. $9,233.33

Key Rules and Data:A company can deduct up to $5,000 of organizational expenses in the first year of…

Answered: Mr. Benedict is starting Belmont Abbey…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 79P

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1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this amount, he deposits 5% of the remaining amount into a money market account earning 2%. If Cameron's monthly earnings are $4,800 what amount interest will he earn on his deposit each month? 2. Find the maturity value for a loan on $4,225 at 8% made on March 5 and due on May 5 of the same year. Assume a 365-day year. 3. Republic Bank advertises their interest rates at 7 % %. You decide to apply for a loan in the amount of $9,000 for 90 days. The bank grants your loan and the loan officer tells you that there is a document preparation fee of $150 that needs to be paid at the time you sign the documents for the loan. Find the APR. Assume a 360-day year. 4. You took out a loan of $5,000 on May 2 and went back on June 15 to make a payment of $1,200. The loan was at 4% for 1 year. What was your remaining balance after making that payment?
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