Question
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June Determine the amount of start-up
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 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 $4,400.
b. She incurred start-up costs of $46,000.
c. She incurred start-up costs of $54,100.
d. She incurred start-up costs of $66,000.
e. 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 | Amount |
(a) 4,400 | |
(b) 46,000 | |
(c) 54,100 | |
(d) 66,000 |
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