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Zolol [24]
2 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]2 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.

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Answer and Explanation:

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2 years ago
An example of global dependency is when products are produced and used in the same country? True or false
alexandr402 [8]

Hello there,

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8 0
3 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
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Answer:

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Explanation:

Giving the following information:

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oksian1 [2.3K]

Answer:

1. 48 dollars

2. 30 dollars

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The yearly premium on their homeowner's insurance policy is $600 for the coverage they need.

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