In Year $1,$ Megan Callas began a new business, KOMI Adventures, a calendar$-$year corporation that provides adventure travel team$-$building and performance improvement programs for business professionals. Megan incurred several costs in Year $1$ to form and organize her business as a corporation. Megan also incurred other costs associated with starting the business before the corporation began doing business on June $1,$ Year $1.$ Megan has provided documentation for these costs in the exhibits above. All costs were paid by the end of the month in which the bill was received.

Using the information provided in the exhibits, calculate the amount that KOMI Adventures can deduct in Year $1$ and Year $2$ for organizational costs and start$-$up costs. Enter the appropriate amounts in the table below using whole dollar amounts. If the amount is zero, enter a zero $(0).$

A B C

$1$ Year $1$ Deduction Cost Year $2$ Deduction Cost

$2$ Organization Cost

$3$ Start Up cost

$4$ Total

$\backslash$table$[[$Departure airline,American$],[$Departure time,$\backslash$table$[[6$:$00a.m.-$ DFW $($See detailed itinerary for$],[$flight numbers.$)]]],[$Arrival time,$8$:$00a*m.],[$Hotel$,$Airport hotels in each city$],[\backslash$table$[[$Main contact$],[$name$/$phone$]],\backslash$table$[[($See detailed itinerary for key contact info for$],[$companies in each city.$)]]],[$Return date,April $15,$ Year $1],[$Return airline,American$],[$Return departure time,$\backslash$table$[[6$:$00$ a$.$m$.-$ SAT $($See detailed tinerary for$],[$flight numbers.$)]]]]$

Start$-$up Costs, Training

Start$-$up Costs, Training

Mantle Teamwork Training

May $5,$ Year $1$

Megan Callas, CEO

KOMI Adventures

$23000$ Dearborn Way

Dallas, TX $75098$

Dear Ms$.$ Callas

Cost incurred for visits to prospective clients April $1-15,$ Year $1($See client management system for details$/$outcomes$.)$

We completed your custom Teamwork Trainng program at cur facility in Dallas May $1-3.$ All of your new staff members completed the three$-$day program. In fact, every menber of your team achieved Dallas to Houston flight $$600$ the highest status on our comprehensive assessment at the end of the program.

Hote

January $25,$ Year $1$

Megan Callas, CEO

KOMI Adventures

Dallas, TX $75098$

Deal Ms$.$ Callas following incorporation documents for KOMI Adventures:

Corporate charter

corporate bylaw

Articles of incorporation

Stock certificate

Iotal

We have forwarded these to your offlce in electronic form, and sent hard copies via reqistered U$\mathrm{.}3.$ mail. The latter includes specific instructions about the necessary signatures and which decuments will need to be nied with whon

The total cost of our services is $$16,500,$ which should be paid to Gallagher & Jonas upon reccipt of our regictered lotter.

Wa wrich wnul wall with ynur now hucinece and Innk fons$/$ard to corvinn unu in

I have enclosed their Certificates of Completion. As we discussed, we recommend that you meet with each of them to present the cerificates and discuss how they will apply what they learned to

Houston to Austin flight

Hote

Gallagher & Jonas, Attorncys at Law

$7500$ Fort Worth Highway Dallas. TX $75000$ Dallas, TX $7500046y-bb-1234$

NJonas@Texan.com