Organizationl Expenditures

posted by .

Following expenses incurred by Corporation when organized on July 1
Attorney fees to draft charter 20,000
Underwriter fees for stock sale 10,000
Transfer cost for property contributed to the corporation for stock 4,000
Costs of organizational meetings before beginning business 5,000
Costs of directors meetings after beginning business 8,000

Corporation commenced business on September 7. What is the maximum amount of organizational expenditures that can be deducted by the corporation for its first tax year ending Dec 31?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Tax consequence

    Corporation is a calendar-year taxpayer. All of the stock is owned by Fred. His basis for the stock is $35,000. On 3/1 (non-leap year), Corporation distributes $120,000 to Evan. Determine the tax consequences of the cash distribution …
  2. Federal Tax II

    Perry organized Cardinal Corporation 10 years ago by contributing property worth $2 million, basis of $450,000 for 2,500 shares of stock in Cardinal, representing 100% of the stock in the corporation. Perry later gave each of his children, …
  3. Accounting

    Physicians practicing in Eastern University‚Äôs hospital have the following compensation agreement. Each doctor bills the patient (or Blue Cross Blue Shield) for his or her services. The doctor pays for all direct expenses incurred …
  4. fundamentals of taxation

    Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases. a. Contribution of property with a basis of $1,000 and a FMV of $1,400. b. Contribution …
  5. math

    Freitas Corporation was organized early in 2009. The following expenditures were made during the first few months of the year: Attorneys' fees in connection with the organization of the corporation $12,000 State filing fees and other …
  6. tax

    Andre formed a corporation and owns all of the stock. He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation. Andre's taxable gain is: $0 $1,000 $3,000 $10,000 is it 3000
  7. Accounting

    Kathryn, an individual, own all of the outstanding stock in Copper Corporation. Kathryn purchased her stock in Copper 11 years ago, and her basis is $18,000. At the beginning of this year, the corporation has $38,000 of accumulated …
  8. accounting

    Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share on January 2, 2010. Sherman Corporation had 100,000 shares of common stock outstanding during 20 I3, paid cash dividends of $120.000 …
  9. Accounting

    3) Green Corporation is a calendar-year taxpayer. All of the stock is owned by Evan. His basis for the stock is $35,000. On March 1 (of a nonleap year), Green Corporation distributes $120,000 to Evan. Determine the tax consequences …
  10. Accounting

    Aunt Rhea Corporation Income Statement For the Year Ended December 31, 2015 Service Revenue $ 900,000 Operating Expenses 700,000 Net Income before Income Tax $ 200,000 Gain on Investment Sale 10,000 Net income Before Income Taxes $ …

More Similar Questions