Organizational Costs
Response to the following problem:
In the process of incorporating a business, ABC corporation incurs organizational costs. ABC was incorporated on June 8, 2014. It officially began business on September 2, 2014. The officers have asked that ABC take the maximum deduction as allowed under the tax law.
a. How much can ABC deduct in 2014 if the total organizational costs are $45,000?
b. How much can ABC deduct in 2014 if the total organizational costs are $52,000?
c. How much can ABC deduct in 2014 if the total organizational costs are $75,000?