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Cherry Corporation, a calendar year corporation, is formed and begins business on April 1, 2019. In connection with its forma
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Answer #1

Cherry's deduction is as follows:
Expense: $5,000 - ($54,000 - $50,000) = $1,000.
Amortization: ($54,000 - $1,000)/180 months = $294.44;

$294.44 x 9 months = $2,649.96 rounded to $2,650.
Therefore, the total deduction is $1,000 + $2,650 = $3,650.

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