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

question 96

Multiple Choice

Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2019.The following expenses were incurred during the first tax year (April 1 through December 31, 2019) of operations. Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2019?

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

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut used in decision-making that involves judging the likelihood of an event based on how closely it matches a prototype or stereotype.

Belief Perseverance

The phenomenon where individuals stick to their initial beliefs even when confronted with contrasting evidence.

Representativeness Heuristic

A cognitive shortcut that involves judging the likelihood of an event based on how closely it resembles a typical case.