Opal Corporation, an Accrual Method, Calendar Year C Corporation, Was

question 56

Multiple Choice

Opal Corporation, an accrual method, calendar year C corporation, was formed and began operations on July 1,
2019. The following expenses were incurred during the first tax year (July 1 through December 31, 2019) of operations.
Expenses of temporary directors and of organizational meetings $8,000
Fee paid to the state of incorporation 2,000
Accounting services incident to organization 3,500
Legal services for drafting the corporate charter and bylaws 4,300
Expenses incident to the printing and sale of stock certificates 6,000
Assuming a § 248 election, what is Opal's deduction for organizational expenditures for 2019?

• A) $593.
• B) $460.
• C) $5,427.
• D) $5,627.
• E) None of these.

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Definitions:

Language Learning

The process by which individuals acquire the ability to perceive, comprehend, and produce verbal and non-verbal forms of communication.

Phonology

The sound system of a language; includes rules for arranging the basic sounds or “phonemes” of the language.

Semantics

An aspect of a language that children must learn, including the words and word parts that express meanings in that language, also called the meaning system of a language.

Autistic Spectrum Disorders

A range of neurological conditions characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.