1)

Mr. Z, a calendar year taxpayer, opened a new car wash. Prior to the car washs grand opening on October 8, Mr. Z incurred various start-up expenditures (rent, utilities, employee salaries, supplies, and so on). In each of the following cases, compute Mr. Zs first-year deduction with respect to these expenditures. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

Required:

1. The start-up expenditures totaled $4,810.
2. The start-up expenditures totaled $29,480.
3. The start-up expenditures totaled $53,000.
4. The start-up expenditures totaled $90,540.

   		Amount
   a.	Deduction
   b.	Deduction
   c.	Deduction
   d.	Deduction

2)

Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $11,500 to the attorney who drew up the articles of incorporation and $5,400 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $16,900 organizational costs on its first tax return? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)