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
Zolol [24]
3 years ago
6

Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500

in legal fees for drafting the LLC’s operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. How much can Candlewood deduct as organizational expenses? As startup expenses?
Business
1 answer:
Harlamova29_29 [7]3 years ago
6 0

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.

You might be interested in
The negative impact of the coronavirus on businesses​
Pie

Answer:

UNEMPLOYMENT..

main cause..

3 0
3 years ago
PLEASE HELP ME ILL MAKE YOU BRAINLIEST
blagie [28]

Answer:

C

Explanation:

Hope this helps!

7 0
3 years ago
Chec
Arada [10]

Answer:

THERE IS NO ANSWER FOR THIS

Explanation:

YOU NEED ALL THE MONEY

6 0
3 years ago
Last year, Cool Lope, Inc. had an inventory turnover rate of 6.8. This year, the turnover rate is 7.1. Based on this information
AnnyKZ [126]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is sold in a given period of time period such as in a quarter or in a year.

The formula is Cost of goods sold ÷ the average inventory.

Higher inventory is better than lower inventory because the higher the inventory turnover, the better a business is selling goods(inventories) very quickly and that demand for their product exists. While low inventory turnover depicts weaker sales and declining demand for a company's products

8 0
3 years ago
I need help with this question if someone could please help me.
marusya05 [52]
B is the correct answer.
7 0
3 years ago
Other questions:
  • Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.
    6·1 answer
  • With a global strategy for conducting business internationally, a company competes primarily ________.
    12·1 answer
  • Four years ago, Mr. B sold his personal property on contract for $200,000, which resulted in a capital gain of $100,000. Mr. B p
    11·1 answer
  • Neoclassical Model of Investment" (1 point): In class, we discussed the idea of net investment, and how it could change in respo
    8·1 answer
  • Use figure 3.4 to answer the following: if the cost of gasoline increased from $3.00 per gallon to $4.00 per gallon and the quan
    15·1 answer
  • Marina Inc. sells and services sailboats. On April 1, Marina financed the purchase of its entire inventory with ACE Finance Comp
    5·1 answer
  • Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made with
    10·1 answer
  • YO CAN YALL SEND HELP MY BRAIN ISNT WORKING TODAY
    5·2 answers
  • The first step in the decision-making process requires you to do what?
    7·1 answer
  • The impact of Furman v. Georgia (1972) was that states had to
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!