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Question 16 Organizational Costs. 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?

Question 16 Organizational Costs. 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?

FINANCIAL ACCOUNTING
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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Can I get some help with these two practice questions this is all the infromation I recieved to complete the practice questions. 

Question 16 Organizational Costs. 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? Question 17 Start-Up Costs. DEF corporation uses a calendar year-end. DEF incurs start-up costs prior to the beginning of its business operations. DEF's business began on March 1, 2019. a. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $35,000? b. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $51,200? c. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $85,000?
Transcribed Image Text:Question 16 Organizational Costs. 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? Question 17 Start-Up Costs. DEF corporation uses a calendar year-end. DEF incurs start-up costs prior to the beginning of its business operations. DEF's business began on March 1, 2019. a. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $35,000? b. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $51,200? c. How much can DEF deduct in 2019 and 2020 if the total start-up costs are $85,000?
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