Racine Started a New Business in the Current Year

question 52

Multiple Choice

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23ʳᵈ of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

• A) $2,555.
• B) $3,544.
• C) $5,522.
• D) $52,000.
• E) None of the choices are correct.

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Definitions:

Incompetence

A lack of ability, skill, or qualifications to perform a task or duty to a required standard.

Termination Of Employment

The end of an employee's duration with an employer, which can be voluntary or involuntary.

Notice

A formal communication or warning given in writing or verbally about something.

Restrictive Covenants

Clauses in contracts that limit the actions of parties, often related to employment, real estate, and business operations to protect interests.