1. Republic Corporation incurs $225,000 of qualifying organizational costs in 2016. As business relating to the organizational costs commences on April 1, 2016, what is the costs that Republic may amortize on its tax return for the tax year ended December 31, 2016.
A. $0 B. $5,000 C. $11,250 D. $15,000.
2. Which of the following statement is correct?
a. The payments of an amortized loan reflect an increasing amount going toward principal and a decreasing amount going toward interest over time.
b. All the answers are incorrect.
c. Annuities due is the payments are made/received at the end of the period.
d. Other things being equal, the less frequently interest is compounded, the more interest the investment will earn.
e. An annuity can be described as a perpetuity that goes on forever.