What is largest deduction for organizational expenditures


Staton Inc. is an accrual basis, calendar year taxpayer that was formed on June 1 of this year. It incurred and paid the following expenses during the year:

Expenses incident to printing and issuing stock certificates $30,000
Accounting services incident to organization 15,200
Legal services incident to incorporation 25,000
Fees for incorporating at the state level 4,100
Expenses of organizational meetings and temporary directors 16,000

What is the largest deduction it can claim this year for organizational expenditures?

a. $2,345

b. $3,512

c. $7,151

d. $8,317

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Accounting Basics: What is largest deduction for organizational expenditures
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