Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2016. Gull incurred the following expenses during its first year of operations (November 1, 2016-December 31, 2016):
| Expenses of temporary directors and organizational meetings |
$21,000 |
| Fee paid to state of incorporation |
3,000 |
| Expenses for printing and sale of stock certificates |
11,000 |
Legal services for drafting the corporate charter and bylaws
(not paid until January 2017) |
19,000 |
a. Assuming that Gull Corporation elects under § 248 to expense and amortize organizational expenditures, what amount may be deducted in 2016?
Round the per-month amount to two decimal places. Round the final answer to the nearest dollar.
Gull Corporation's deduction for 2016 is $.
b. Assume the same facts as above, except that the amount paid for the legal services was $28,000 (instead of $19,000). What amount may be deducted as organizational expenditures in 2016?