In Year 1, Katie began a new business, Beautiful Minds Inc, a calendar-year corporation that provides adventure travel team-building and performance improvement programs for business professionals. Katie incurred several costs in Year 1 to form and organize her business as a corporation.

Katie also incurred other costs associated with starting the business before the corporation began doing business on June 1, Year 1. Below is a list of expenses. All costs were paid by the end of the month in which the bill was received.

May 5, Year 1	Teamwork Training program	24,000.00
January 20, Year 1	Legal Fees to incorporate	18,000.00
April, Year 1	Travel to prospective clients	10,000.00
March 5, Year 1	Marketing plan, website design, promotional materials	15,000.00
February 24, Year 1	Accounting System Installation	12,450.00

Instructions: Using the information provided in the exhibits, calculate the amount that Beautiful Minds Inc can deduct in Year 1 and Year 2 for organizational costs and start-up costs in the provided template (include amortization amount). Show work as necessary.

	Year 1 Deduction	Year 2 Deduction
Organizational Costs
Start-up Costs
Total