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17. A calendar-year corporation incurs $54,000 of start-up costs. If the corporation begins business on August 1, 2019, what is the maximum amount of the

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17. A calendar-year corporation incurs $54,000 of start-up costs. If the corporation begins business on August 1, 2019, what is the maximum amount of the $54,000 of start-up costs that it can deduct against business income in 2019? $1,500 $5,389 $5,000 $6,361 $2,472 b. c. d. 18. Which of the following is not an organizational cost? Suate costs of incorporation b Costs of organizational meetings c. Expenses of temporary directors d. Legal expenses for setting up the corporation Costs of issuing or selling stock C. 19. The sole shareholder of a corporation contributes land worth $60,000 to the corporation in exchange for stock worth $45,000 and $15,000 cash. The shareholder's basis in the land is $28,000. The shareholder's recognized gain and basis in the shares of stock received on the exchange are: 50 and $28,000, respectively. $15,000 and $43.000, respectively. $32,000 and $60,000, respectively. d. $15,000 and $28,000, respectively, SO and $60,000, respectively. b. c. 20. An employer pays one of its unmarried employees wages totaling $300,000. The amount the employer must withhold from the employee's pay for Medicare taxes, and the amount of the employer's share of Medicare taxes for this employee, are: $4,350 and $4,350, respectively. b. $4,350 and $5,250, respectively, c. $5,250 and $5,250, respectively. d. $5.250 and $4,350, respectively. none of the above. b. 21. The penalty for failing to file a tax retum on time (late filing penalty) is equal to: 5% of the amount due for each full month that the return is late, up to a maximum 25% penalty 5% of the amount due for each month (or fraction of a month) that the return is late, up to a maximum 25% penalty 5% of the amount due for each full month that the return is late, up to a maximum 25% penalty d. 5% of the amount due for each month (or fraction of a month) that the return is late, up to a maximum 25% penalty. None of the above. C

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