Green Corporation is incorporated on March 1 and begins business on June 1. Green's first tax year ends on October 31, i. e., a short year. Green incurs the following expenses during the year: Month Type Amount February March March April December Draft charter Stock commission Accounting fees to set up books Temporary director fees Charter modification fee $ 2,000 30,000 2,000 2,000 1,000 What is the deduction for organizational expenses if Green chooses to deduct its costs as soon as possible? A. $500 B. $36,000 C. $5,028 D. $667

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Business

Madilyn Kaufman

23 September, 07:40

Green Corporation is incorporated on March 1 and begins business on June 1. Green's first tax year ends on October 31, i. e., a short year. Green incurs the following expenses during the year: Month Type Amount February March March April December Draft charter Stock commission Accounting fees to set up books Temporary director fees Charter modification fee $ 2,000 30,000 2,000 2,000 1,000 What is the deduction for organizational expenses if Green chooses to deduct its costs as soon as possible? A. $500 B. $36,000 C. $5,028 D. $667

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Callie Finley · Answer 1

C' $5,028

Step by Step Explanation:

The deduction for organizational expenses if Green chooses to deduct its costs as soon as possible are:

$2,000 + $2,000 + $2,000 = $6,000

$6,000 - $5,000 = $1,000

$1,000/180 months * 5 months = $27.7

Approximately $28

Therefore:

$5,000 + 28 = $5,028