Problem 11-6 Special Deductions and Limitations (LO 11.3) Beech Corporation, an accrual-basis, calendar-year taxpayer, was organized and began business in May of the current calendar tax year. During the current year, the corporation incurred the following expenses: State fees for incorporation $ 800 Legal and accounting fees incident to organization 5,500 Expenses for the sale of stock 2,500 1,000 Organizational meeting expenses Round your answer to 2 decimal places. Assuming that Beech Corporation wishes to deduct organizational expenses as quickly as possible, calculate the corporation's deduction for its current calendar tax year.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
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Chapter3: Corporations: Introduction And Operating Rules
Section: Chapter Questions
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Problem 11-6
Special Deductions and Limitations (LO 11.3)
Beech Corporation, an accrual-basis, calendar-year taxpayer, was organized and began business in May of the current calendar tax year. During
the current year, the corporation incurred the following expenses:
State fees for incorporation
$ 800
Legal and accounting fees incident to organization
5,500
Expenses for the sale of stock
2,500
1,000
Organizational meeting expenses
Round your answer to 2 decimal places.
Assuming that Beech Corporation wishes to deduct organizational expenses as quickly as possible, calculate the corporation's deduction for its
current calendar tax year.
Transcribed Image Text:Problem 11-6 Special Deductions and Limitations (LO 11.3) Beech Corporation, an accrual-basis, calendar-year taxpayer, was organized and began business in May of the current calendar tax year. During the current year, the corporation incurred the following expenses: State fees for incorporation $ 800 Legal and accounting fees incident to organization 5,500 Expenses for the sale of stock 2,500 1,000 Organizational meeting expenses Round your answer to 2 decimal places. Assuming that Beech Corporation wishes to deduct organizational expenses as quickly as possible, calculate the corporation's deduction for its current calendar tax year.
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