Egret Corporation, a calendar year C corporation, was formed on March 6, 2016, and opened for business
Question:
Egret Corporation, a calendar year C corporation, was formed on March 6, 2016, and opened for business on July 1, 2016. After its formation but prior to opening for business, Egret incurred the following expenditures:
Accounting ................................................ $ 7,000
Advertising ................................................. 14,500
Employee payroll ...................................... 11,000
Rent .............................................................. 8,000
Utilities ......................................................... 1,000
What is the maximum amount of these expenditures that Egret can deduct in 2016?
Step by Step Answer:
South Western Federal Taxation 2017 Comprehensive
ISBN: 9781305874169
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young