Exercise 14-5 (Algorithmic) (LO. 3) Candlewood LLC began its business on August 1, 2019; and...
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Exercise 14-5 (Algorithmic) (LO. 3)
Candlewood LLC began its business on August 1, 2019; and it uses a calendar tax and an accounting year. Candlewood incurred $9,100 in legal fees for drafting the LLC's operating agreement and $4,550 in accounting fees for tax advice of an organizational nature, for a total of $13,650 of organizational costs. Candlewood also incurred $36,000 of preopening advertising expenses and $15,900 of salaries and training costs for new employees before opening for business, for a total of $51,900 of startup costs. The LLC desires to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar.
Compute Candlewoods deductions for the first year of its operations for:
a. Organizational expenses: $5,240
b. Startup expenses:???
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