Determine the amount of start-up costs


Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including amortization) this year in the following alternative scenarios:

a.She incurred start-up costs of $2,600.

b.She incurred start-up costs of $41,250.

c.She incurred start-up costs of $51,250.

d.She incurred start-up costs of $61,500.

e.How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?

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Accounting Basics: Determine the amount of start-up costs
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