1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Jlenok [28]
3 years ago
15

Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp

enses, and began business in March, Year 1. What is the maximum amount Crimson may deduct for organizational expenditures on its Year 1 corporate tax return?
Business
1 answer:
Lelechka [254]3 years ago
3 0

Answer:

Total deductible organization expenses  is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

= $ 6,611

You might be interested in
g The $1,000 face value bonds of Trident Corporation have coupon of 5.5 percent and pay interest semiannually. Currently, the bo
Maslowich

Answer:

The answer is 5.73%

Explanation:

Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2

NPER= Years of maturity *2= 12*2=24

PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75

Therefore:

Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%

Yield to maturity= Rate *2= 2.87*2= 5.73%

6 0
3 years ago
Pedro sells investment land on September 1, 2019. Information pertaining to the sale follows: Adjusted basis $25,000 Selling pri
bearhunter [10]

The tax consequence in 2019 is $10584 while the tax consequence from 2020 to 2023 will be $13229.

Bases on the information given, the realized gain will be:

= $90000 - $25000 - $1500

= $63500

The gross profit percentage will be:

= 63500/(90000 - 18000) × 100

= 63500/72000 × 100

= 88.19%

The tax consequence in 2019 will be:

= $12000 × 88.19% = $10584

The tax consequence in 2020 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2021 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2022 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2023 will be:

= $15000 × 88.19% = $13229

Read related link on:

brainly.com/question/25301019

8 0
2 years ago
Which of the following can result from inflation in the United States?
Semenov [28]

Answer:

b. Investors buy products in other countries.

Explanation:

Inflation causes higher cost of production for manufacturer which then charge high cost for the products. Thus, if there is inflation in US, product cost will skyrocket thus companies will buy products from other countries where the product might be at a cheaper cost.

4 0
2 years ago
One way in which you lose financially when buying a new car is​
ivanzaharov [21]
A I’m not doing this but pretty sure A
7 0
2 years ago
Richard Miller is saving for an Australian vacation in three years. He estimates that he will need $4,930 to cover his airfare a
Bond [772]

Answer:

$1476.71

Explanation:

Formula = pmt(((1+r)^n)-1)/I

I = nominal interest rate

Pmt = dollar amount

r = interest rate

N = number of period

4930 = pmt(((1 +0.109)^3)-1)/0.109

4930 = pmt(1.109^3)-1/0.109

4930 = pmt(1.3639-1)/0.109

4930 = pmt(0.3638/0.109)

4930 = pmt3.3385

Pmt = 4930/3 3385

= $1476.71

Richard miller would have to save $1476.71

5 0
3 years ago
Other questions:
  • In 2014 Electric Autos had sales of $135 million and assets at the start of the year of $220 million. If its return on start-of-
    15·1 answer
  • The concept of opportunity cost is a measure of​ _________.
    8·1 answer
  • What are some of the primary reasons a company decides to expand internationally? Identify a company in the news that has recent
    8·1 answer
  • Management at the Forrest Company currently sells its products for $ 225 per unit and is contemplating a 40​% increase in the se
    12·1 answer
  • Concord Corporation is planning to sell 500 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box o
    11·1 answer
  • Effective leaders set a direction and develop an organization so that it is committed to excellence and ___________ behavior.
    5·1 answer
  • Given D: Annual use of a particular item, in number of items per year Q: Number of items ordered in one purchase order, in units
    10·1 answer
  • Grade 10 SBA TERM 3 business studies ​
    11·1 answer
  • Describe why it is important to understand how businesses impact you.
    5·1 answer
  • On a linear demand curve, if the price is low and the quantity demanded is high, demand is _____ in that region and a price incr
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!