Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2019. Gull incurred the following expenses during its
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2019. Gull incurred the following expenses during its first year of operations (November 1, 2019December 31, 2019):
Expenses of temporary directors and organizational meetings | $21,000 |
Fee paid to state of incorporation | 3,000 |
Expenses for printing and sale of stock certificates | 11,000 |
Legal services for drafting the corporate charter and bylaws (not paid until January 2020) | 19,000 |
-
Assuming that Gull Corporation elects under 248 to expense and amortize organizational expenditures, what amount may be deducted in 2019?
-
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 2019?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started