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:

Organizational Objectives

The specific, measurable goals that an organization aims to achieve to fulfill its mission and advance its strategic plan.

Total Quality Management (TQM)

An organization-wide approach aiming at continuous improvement of all processes, products, services, and culture to achieve long-term success through customer satisfaction.

Productive Workforce

A group of employees that efficiently achieves high levels of output and contributes significantly to the organization's goals.

Joint Performance

The collaborative efforts of two or more parties to achieve a shared objective.