Jasmine Started a New Business in the Current Year

question 19

Multiple Choice

Jasmine started a new business in the current year. She incurred $10,000 of start-up costs. How much of the start-up costs can be immediately deducted (excluding amounts amortized over 180 months) for the year?

• A)$0
• B)$2,500
• C)$5,000
• D)$10,000
• E)None of the choices are correct.

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Definitions:

Depreciable Non-current Asset

A long-term asset subject to depreciation, reflecting the asset's consumption, wear and tear, or obsolescence over its useful life.

Unrealised Gain

Profit that has been made on paper due to an increase in the value of an asset but has not yet been realized through a transaction.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life, reducing its book value on the balance sheet.