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:

Decline

A gradual decrease in quality, quantity, or strength, sometimes referring to physical health, population, or economic conditions.

Death

The cessation of all biological functions that sustain a living organism, marked by the end of life.

Ego Differentiation

The process of finding alternative sources of self-worth as one ages, especially when previous roles such as work become less central.

Work-Role Preoccupation

An excessive focus on work and job responsibilities, often at the expense of personal relationships and leisure activities.