Question
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios. (Leave no answer blank. Enter zero if applicable.)
A) She incurred start-up costs of $41,500. Amount of start up costs immediately expensed is? It's not 41,500 for the answer because I got it wrong.
B) She incurred start-up costs of $51,400. Amount of start up costs immediately expensed is? It's not 51,400 for the answer because I got it wrong.
C)She incurred start-up costs of $61,750. Amount of start up costs immediately expensed is? It's not 61,750 for the answer because I got it wrong.
D) How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?
Costs incurred (a) 2,700 (b) 41,500 (c) 51,400 (d) 61,750 AmountStep by Step Solution
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