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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

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Daniel watched the 95-year-old actor Kirk Douglas present the Oscar for Best Supporting Actress in 2011. Daniel became frustrate
8_murik_8 [283]

Answer:

daniel should have focused on the message and not on the way it was delivered.

Explanation:

If Daniel had focused more on getting the message that was being passed by Kirk Douglas, he would have enjoyed the show more.

But in this case he was more focused on how Kirk Douglas was not accurately forming his words. The more he listened the more frustrated he became.

5 0
3 years ago
Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the
Lana71 [14]

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

6 0
3 years ago
the starting point for preparing the operating activities section using the indirect method is ______.
insens350 [35]

Organizations often have different operations. The starting point for preparing the operating activities section using the indirect method is Net income.

  • Net income is simply known to be the gross profit and removing  all other expenses, costs and any other income and revenue sources that are not included in gross income.

A lot of other costs is often removed from gross to make it be at net income. They  include interest on debt, taxes, and operating expenses or overhead costs.

Learn more from

brainly.com/question/19850768

3 0
2 years ago
Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $18,300 cash at the b
Alekssandra [29.7K]

Answer:

The Company must borrow $5400

Explanation:

To calcualte the amount rewquired to be borrowed, we first need to calculate the cash shortage from the minimum cash requirement.

The cash at the end of the August will be,

Cash at the end = 18300 + 123400 - 137100 = $4600

The minimum requirement is $10000.

The shortage of cash is = 10000 - 4600 = $5400

Thus, the Company must borrow $5400

7 0
3 years ago
Mr. Able wants to set up a tax-deductible fund to be used to support young talented individuals to enhance their abilities. What
Gre4nikov [31]

Answer:

Mr. Able have to open a Private Foundation to set up a Tax-deductible fund.

Explanation:

  • They will exclude donations up to 30 per cent to 60 per cent of our income, based on the charity's existence and tax-exempt status.
  • You will state your expenses to assert a charitable deduction on your tax return.
  • Private foundation contributions are tax deductible up to 30 percent of the adjusted gross benefit for assets and up to 20 percent of the income for assessed shares, with a five-year hold forward.

therefore Mr Able must donate his funds

8 0
3 years ago
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