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Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2022. Gull incurred the following expenses during
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2022. Gull incurred the following expenses during its first year of operations (November 1, 2022-December 31, 2022): Expenses of temporary directors and organizational meetings Fee paid to state of incorporation Expenses for printing and sale of stock certificates Legal services for drafting the corporate charter and bylaws (not paid until January 2023) $21,000 3,000 11,000 19,000 Round the per-month amount to two decimal places. Round the final answer to the nearest dollar. a. Assuming that Gull Corporation elects under 248 to expense and amortize organizational expenditures, what amount may be deducted in 2022? Gull Corporation's deduction for 2022 is $ 5,422.22 X. Feedback Check My Work Organizational expenditures include the following: Legal services incident to organization. Necessary accounting services. Fees paid to the state of incorporation. b. Assume the same facts as above, except that the amount paid for the legal services was $28,000 (instead of $19,000). What amount may be deducted as organizational expenditures in 2022? 3,544.44 X
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