Question

Candlewood LLC started business on September 1, 2019, and adopted a calendar year. During 2020, 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.
If required, round any division to five decimal places and use in subsequent computations. Round your final answers to the nearest dollar.
In 2019, the LLC may deduct $___________ as organizational expenses and $____________ as startup expenses.

Answer 1

Answer:

The answer to this question can be described as follows:

Explanation:

The beginning expenses relate to the costs incurred in starting of the company. Once starting Activities lead to successful trade, instead of investment amounts. It can be removed throughout the taxable income for the company will be the year of graduation. In this question two blank is available, which can be described as follows:

• Expenditures payment of living for the new company.  

• Rs 5000 reduced by half the start-up expenses surpass 50,000  as far as the new company.