What amount of the start-up costs and organizational


Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started:

  • Expense Date Amount
  • Attorney fees for articles of
  • incorp February 10 $38,000
  • March 1-March 30 wages March 30 $3,800
  • March 1-March 30 rent March 30 $1,900
  • Stock issuance April 1 $21,000
  • April 1-May 30 wages May 30 $9,500

A. What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1?

  • Total amount of the start-up costs $
  • Organizational expenditures $

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