Answer:
Organization expenses $5,100
Startup expenses $1,700
Explanation:
Calculation of organisation expenses and startup expenses
Particulars Calculations Amount
Actual expense $54,500
Reduced for startup upto $50,000 $5,000
1. LLC may deduct ($9,500 - $5,000)*4/180 $100
Organization expenses ($5000 + $100) $5,100
2. Deduction for startup ($5,000 - $4,500) $500
Write off during the year $54,000*4/180 $1,200
Startup expenses $1,700
NB: Startup expenses are all expenses incurred for the start-up of the business are known as the startup expense which is related to the existing expense of business and will be approved after the firm.
