1. The corporation was formed on June 28, 2016, and began business in July of 2016. It elected to file its tax rturn using a calender year. The officers of the corporation request the bookkeeper to currently deduct expenses where possible and to amortize the remaining expenses over the shortest possible period for federal income tax pruposes. What is the amount deductible on the corporations tax return in 2016?
2. In 2016, MYB Co. purchased $160,000 of equipment to be used in its manufucuatring plant. What is the correct tax treatment of this expenditure?
3. ABC Company incurs $15,200 in R&E costs in conjunction with developing a patent. How much can ABC Company deduct in the first year of the patent?