Delta Corporation incorporates on January 7, begins business on July 10, and elects to have its initial tax year end on October 31. Delta incurs the following expenses between January and October related to its organization during the current year B (Click on the icon to view list of expenses ) Read the equirements Requirement a. What alternative treatments are available for Delta's expenditures? Select the tax treatment for each expenditure. Begin with the expenditures incurred through June 1. Then, complete the table for the expenditures through July 15. Date Expenditure Amount Treatment $ January 30 Travel to investigate potential business site May 15 Legal expenses to draft corporate charter May 30 Commissions to stockbroker for issuing and selling stock May 30 Temporary directors' fees 2000 Start-up expense 2,500 Organizational expense 4,000 Reduction of capital 2,500 Organizational expense June 1 3.000 Capitalized to the related asset June 5 1.500 Organizational expense June 10 Expense of transferring building to Delta Accounting fees to set up corporate books Training expenses for employees Rent expense for June Rent expense for July 5,000 Start-up expense June 15 1,000 Start-up expense July 15 1,000 Sec. 162 expense and amortize the remainder Delta Corporation can elect to deduct of organizational expenditures under months. This election is deemed automatic under Treasury Regulations. over What alternative treatments are available for Delta's expenditures? What amount of organizational expenditures can Delta Corporation deduct on its first tax return for the fiscal year ending October 31? What amount of start-up costs can Delta Corporation deduct on its first tax return? Date Expenditure Amount January 30 Travel to investigate potential business site G 2.000 May 15 Legal expenses to draft corporate charter Commissions to stockbroker for issuing and selling stock 2 500 May 30 4.000 May 30 Temporary directors' fees, 2.500 June 1 3.000 Expense of transferring building to Delta Accounting fees to set up corporate books June 5 1500 June 10 Training expenses for employees June 15 Rent expense for June 1000 July 15 Rent expense for July 1.000