2019

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: (Leave no answer blank. Enter zero If applicable.) 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 Date Amount February 10 $40,000 March 30 6,400 March 30 2,800 April 1 25,000 May 30 16,000 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)? (Round Intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Start-up costs amortized Organizational expenditures amortized 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 Date Amount February 10 $40,000 March 30 6,400 March 30 2,800 April 1 25,000 May 30 16,000 b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1(excluding the portion of the expenditures that are amortized over 180 months)? Answer is complete and correct. Start-up costs expensed Organizational expenditures expensed 5,000 5,000