Question
Q- A partnership incurred $6,000 of organizational costs and $52.000 of start-up costs in its first year. It began conducting business on October 1st of
Q- A partnership incurred $6,000 of organizational costs and $52.000 of start-up costs in its first year. It began conducting business on October 1st of its first year. Which of the following are true? a- The partnership can immediately deduct all $6.000 of its organizational costs. b- The partnership can immediately deduct $5,000 of its organizational costs and amortize the residue over 180 months beginning in October of the first year. c- The partnership can immediately deduct $5,000 of its start up costs and amortize the residue over 180 months beginning in October of its 1st year. d- The partnership can immediately deduct $3,000 of its start up costs and amortize the residue over 180 months beginning October of the first year. e- Only B and D above are correct.
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