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 amortization) this year in the following alternative scenarios:
1) She incurred start-up costs of $2,500.
a) Amount of start up costs immediately expensed?______________
2) She incurred start-up costs of $41,000
a) Amount of start up cost immediately expensed
3) She incurred start-up costs of $51,100.
a) Amount of start up cost immediately expensed
4) She incurred start-up costs of $61,250.(Leave no answer blank. Enter zero if applicable.)
a) Amount of start up cost immediately expensed
5) 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)?(Leave no answer blank. Enter zero if applicable.) Amount of Organizations Expenditures Immediately Expensed a)______ b)______ c)______ d)_____________
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