Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.

Question

Delvig [45]

3 years ago

9

Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.

(A) 240(B) 180(C) 120(D) 60

Business

1 answer:

irina1246 [14] · Answer 1 · 2022-05-19T01:56:03+03:00

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).