Ask Question
14 May, 05:44

Oleander Corporation, a calendar year entity, begins business on March 1, 2018. The corporation incurs startup expenditures of $64,000. In your calculations, round any division to 2 decimal places. Round your final answer to the nearest dollar. If Oleander elects § 195 treatment, the total amount of startup expenditures that it may deduct in 2018 is $ ___.

+3
Answers (1)
  1. 14 May, 06:38
    0
    The total amount that Oleander is allowed to deduct using subsection 195 that deals with the start-up expenditures. The amount that qualifies for the computation of tax deductible expenses are those that have been incurred as a startup expenditure.

    Furthermore it must be lower of:

    (i) the amount of start-up expenditures amortized using the months in the tax year that covers this expenditure (numerator) and using 180 month period (denominator).

    (ii) $5,000

    Explanation:

    So the amount allowable for the expenses is lower of:

    $64,000 * 10 months / 180 months = $3556 $5000

    So the answer is $3556
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Oleander Corporation, a calendar year entity, begins business on March 1, 2018. The corporation incurs startup expenditures of $64,000. In ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers