Haze Corp., an accrual -basis, calendar-year C corporation, began business on January 1, Year 1, and incurred the following costs:

Underwriting fees to issue corporate stock $12,000

Legal fees to draft the corporate charter 41,000

What was the maximum amount of organization costs that Haze could deduct for tax purposes on its Year 1 income tax return?

$0

$2400

$5000

$7400