Nicole organized a new corporation. The corporation began business on April 1 of year 1....
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Accounting
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
$
39,500
March 1 March 30 wages
March 30
6,250
March 1 March 30 rent
March 30
2,750
Stock issuance costs
April 1
26,000
April 1 May 30 wages
May 30
15,625
a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?
b. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)?
c. What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 (not including the amount determined in part b)? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)
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