Suppose there were several large outstanding checks on the year-end bank reconciliation that did not clear the bank by the cutof
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Answer:
Emerald’s deduction for organizational expenditures is = $4550
Explanation:
given data
Expenses of temporary director and organizational meeting is = $27,000
Fee paid to state of incorporation = 1,000
Accounting services incident = 15,500
Legal services = 9,500
Expenses incident printing and sale = 6,000
to find out
Emerald deduction for organizational expenditures
solution
first we get here total Qualifying organizational expenditures that is
total Qualifying organizational expenditures = $27,000 + $1,000 + $15,500 + $9,500
total Qualifying organizational expenditures = $53000
and Immediate expensing will be as
Immediate expensing = $5000 - ($53000 - $50000)
Immediate expensing = $2000
so now we get here Emerald Corporation deduction under §248 for 2018 is
Amortization = × 9
here tax in year = 9 month
Amortization = $2550
Emerald’s deduction for organizational expenditures is = $2550 + $2000
Emerald’s deduction for organizational expenditures is = $4550