Warbler Corporation, an Accrual Method Regular Corporation, Was Formed and Began

question 35

Essay

Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2019.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2019): $\begin{array}{lr}\text { Expenses of temporary directors and organizational meetings } & \$ 25,000 \\\text { Incorporation fee paid to state } & 2,000 \\\text { Expenses incurred in printing and selling stock certificates } & 10,000 \\\text { Accounting services incident to organization } & 12,000\end{array}$
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2019?
expenditures?
b. Same as a., except that Warbler also incurred in 2019 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2019 deduction for organizational

Estimate variable and fixed components of specific costs.

Derive cost formulas for mixed costs using actual data.

Identify key films and directors within the film noir genre and their distinctive characteristics.

Understand the historical context of the Hollywood studio system, including antitrust lawsuits and the Paramount decision.

---

Definitions:

Assembly Department

A division within a manufacturing facility where components are put together to form a final product.

Materials

Materials refer to the supplies and components used in the production of goods or services, a broader category that includes raw materials and any other consumables in the manufacturing process.

Conversion Costs

Combined costs of direct labor and manufacturing overheads, representing expenses required to convert raw materials into finished goods.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods in process costing environments, treating them as if they were whole units.