Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the followingexpenditures associated with getting the corporation started:ExpenseDateAmountAttorney fees for articles of incorporationFebruary 10 $ 40,500Stock issuance costsMarch 1-March 30 wagesMarch 1-March 30 rentApril 1-May 30 wagesNote: Leave no answer blank. Enter zero if applicable.March 306,550March 302,850April 1May 3024,00016,375b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excludingthe portion of the expenditures that are amortized over 180 months)?Start-up costs expensedOrganizational expenditures expensed

As per the Law, businesses can deduct up to $5,000 of start-up costs and $5,000 of organizational…

Answered: Nicole organized a new corporation. The…

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 56P

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Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started:\ table[[Expense, Date,Amount], [\table[[Attorney fees for articles of incorporation], [March 1 - March 30 wages]], February 10, $43,000 What is the total amount on the start-up cost and organizational expenditures for nicoles corporation?
Subject - account Please help me. Thankyou.
deductible)? 73. Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Attorney fees for articles of incorporation February 10 March 1-March 30 wages March 30 March 1-March 30 rent March 30 Stock issuance costs April 1 April 1-May 30 wages May 30 Date Amount $32,000 4,500 2,000 20,000 12,000 a) What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? b) What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)? c) What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 [not including the amount determined in part (b)]? d) What would be the total allowable organizational expenditures if Nicole…
Beech Corporation, an accrual-basis, calendar-year taxpayer, was organized and began business in June of the current calendar tax year. During the current year, the corporation incurred the following expenses: State feeds for incorporation $775 legal and accounting fees incedent to organization 2,713 Expenses for the sale of stock 3,100 Organizational meeting expenses 3,294 Assuming that Beech Corporation wishes to deduct organizational expenses as quickly as possible, calculate the corporation’s deduction for its current calendar tax year.
You are an accountant working for a company that has recently decided to incorporate. The company has incurred $4,300 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?
You are an accountant working for a manufacturing company that makes personal care products and has recently decided to incorporate. The company incurred a total of $7,900 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on February 28, assuming they are paid in cash?
On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 26,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $13,000 of common stock to Suzie. Jul. 1 Sell $13,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,640 ($470 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,800 on account. Jul. 7 Pay for advertising of $350 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,100 cash.…
Subject : Accounting
On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $18,500 of common stock to Suzie. Jul. 1 Sell $18,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,500 cash.…
For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omniocular's S election, effective August 1, 2025. In 2025, Omniocular reported the following income or expense items: January 1—July 31, 2025 (212 days) August 1—December 31, 2025 (153 days) January 1—December 31, 2025 Sales revenue $ 80,000 $ 185,000 $ 265,000 Cost of goods sold (40,000) (20,000) (60,000) Salaries to Barry and Winnie (60,000) (40,000) (100,000) Depreciation expense (7,000) (2,000) (9,000) Miscellaneous expenses (4,000) (3,000) (7,000) Interest income 6,000 5,250 11,250 Overall net income (loss) $ (25,000) $ 125,250 $ 100,250 For tax purposes, how would you recommend Barry and Winnie allocate income between the short S corporation year and the short C corporation year if they would like to minimize double taxation of Omniocular's income? Assume in part (f) that Omniocular allocates income…
Beech Corporation, an accrual basis calendar year taxpayer, was organized and began business on July 1st of the current calendar tax year. During the current year, the corporation incurred the following expenses: State fees for incorporation $ 2,545 Legal and accounting fees incident to organization 8,908 Expenses for the sale of stock 10,180 Organizational meeting expenses 3,818 Assuming that Beech Corporation does not elect to expense but chooses to amortize organizational expenditures over 15 years, calculate the corporation's deduction for its current calendar tax year. Round per month calculation to two decimal places. Round your final answer to the nearest dollar.
Lakeview, a calendar year C corporation, reports the following income and expenses in the current year: Income from operations $400,000 Expenses from operations $280,000 Dividends received (10% ownership) $30,000 On July 15t of the year, Lakeview made a cash contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items). What is Lakeview's charitable contribution deduction for the year? Answer: $ . The charitable contribution deduction for corporations is limited to 10% of their taxable income for the year computed without regard to the charitable contribution deduction, net operating loss or capital loss carrybacks, and dividends received deduction. In this course, we are not applying the changes under the CARES Act.

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