Xavier Corporation begins business on March 1, 2018. The corporation incurs start-up expenditures of $38,000. a. If Xavier elects amortization under § 195, the total start-up expenditures that Xavier may deduct in 2018 and assume the same facts except the start-up costs totaled $52,000. The total start-up expenditures that Xavier may deduct in 2018 are ?
Xavier Corporation begins business on March 1, 2018. The corporation incurs start-up expenditures of $38,000. a....
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation February 10 $ 42,000 March 1 – March 30 wages March 30 7,000 March 1 – March 30 rent March 30 3,000 Stock issuance costs April 1 21,000 April 1 – May 30 wages May 30 17,500...
Cherry Corporation, a calendar year C corporation, is formed and begins business on 10/1/2018. In connection with its formation, Cherry incurs organizational expenditures of $53,300. Round the per month amount to two decimal places. Round your final answer to the nearest dollar. Determine Cherry Corporation's deduction for organizational expenditures for 2018.
a sole proprietorship that began business may 1 2017 incurred $9000 of start up expenses if the business elects to report the maxium amount of start up costs as a current expense what is the amortization amount reported as an other expense on schedule C
Required Information The following information applies to the questions displayed below) Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable. Expense Attorney fees for articles of incorporation March 1 - March 30 wages March 1 - March 30 rent Stock issuance costs April 1 - May 30 wages Date Amount February 10 $40,000 March 30...
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Required information [The following information applies to the questions displayed below. Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Attorney fees for articles of incorporation March 1-March 30 wages March 1-March 30 rent Stock issuance costs April 1-May 30 wages Date February 10 March 30 March 30 April 1...
IDUAL TAXATION FINAL EXAM 16. James purchased a new business asset (three-year personalty) on July 23, 2018, at a cost of $40,000. James takes additional first-year (Bonus) depreciation but does not elect Section 179 expense on the asset. Determine the cost recovery deduction for 2018. a. $8,333 b. $26,666 c. $33,333 d. $40,000 e. None of the above 17. Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of $30,000. She also purchased a...
On January 1, 2018, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $620,000. Additionally, Blackstone paid a real estate broker's commission of $38,000, legal fees of $7,000, and title insurance of $19,000. The closing statement indicated that the land value was $510,000 and the building value was $110,000. Shortly after acquisition, the building was razed at a cost of $77,000. Blackstone entered into a $3,200,000 fixed-price contract with Barnett Builders, Inc., on March...
XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Exhibit 16-6. XYZ corp. Book Income Income statement For current year Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000 ) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,000 1 Interest income 20,000 2 Capital gains (losses) (4,000 ) Gain or...
XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Exhibit 16-6. XYZ corp. Book Income Income statement For current year Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000 ) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,000 1 Interest income 20,000 2 Capital gains (losses) (4,000 ) Gain or...
Start-up costs: 1) The Boulevard Mall charges you $2,500 rent per month, which includes utilities, telephone, cleaning, and maintenance. You estimated that 90% of the rent was related to factory operations and 10% was related to selling and administrative activities. 2) You order white, cotton t-shirts from a T-shirt wholesaler. Each T-shirt costs (including taxes, shipping, and handling) $3.75 to purchase. 3) To store T-shirts that were bought, but not yet imprinted, you rent a storage unit. The storage unit...