Emerald Corporation, a Calendar Year C Corporation, Was Formed and Began

question 131

Multiple Choice

Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2017.The following expenses were incurred during the first tax year (April 1 through December 31, 2017) of operations. $\begin{array}{lr}\text { Expenses of temporary directors and of organizational meetings } & \$ 27,000 \\\text { Fee paid to the state of incorporation } & 1,000 \\\text { Accounting services incident to organization } & 15,500 \\\text { Legal services for drafting the corporate charter and bylaws } & 9,500 \\\text { Expenses incident to the printing and sale of stock certificates } & 6,000\end{array}$ ? Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2017?

• A)$0
• B)$4,550
• C)$5,000
• D)$7,400
• E)None of the above

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Definitions:

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A method of professional development where employees acquire skills and knowledge during the course of their regular work activities, often under the guidance of experienced colleagues.

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