ACCOUNTING TAX

MULTIPLE CHOICE

1. Indo Corporation was organized on January 4, 2018, and began active business on January 5, 2018. Indo incurred the following expenses in connection with creating its business.

Professional fees for stock issurance	$400
State incorporation fees	200
Printing costs for stock certificates	150
Broker's commissions on sale of stock	700
Legal fees for drafting the charter	600
Expenses for temporary directors	500

What is the maxmium amount of organizational expenses which may be deducted by Indo on its 2018 tax return?

a. $1,300 b.$1,700 c. $1,850 d. $2,550 e. None of the above