Required information [The following information applies to the questions displayed below.] 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 March 1-March 30 wages March 1-March 30 rent Stock issuance costs April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. Date February 10 March 30 March 30 April 1 May 30 Amount $ 38,500 5,950 2,650 28,000 14,875 What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for ear 1 [not including the amount determined in part (b)]? ote: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
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
March 1-March 30 wages
March 1-March 30 rent
Stock issuance costs
April 1-May 30 wages
Note: Leave no answer blank. Enter zero if applicable.
Date
February 10
March 30
March 30
April 1
May 30
Start-up costs amortized
Organizational expenditures amortized
Amount
$ 38,500
5,950
2,650
28,000
14,875
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)]?
Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 March 1-March 30 wages March 1-March 30 rent Stock issuance costs April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. Date February 10 March 30 March 30 April 1 May 30 Start-up costs amortized Organizational expenditures amortized Amount $ 38,500 5,950 2,650 28,000 14,875 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)]? Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.
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