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:

U.S. Constitution

The foundational document of the United States government, outlining the structure, functions, and powers of its three branches and the rights of its citizens.

Duress

Compulsion by threat or force; coercion that makes someone act against their will.

Skim Company Funds

The unauthorized diversion of company funds, typically for personal use, which is illegal and unethical.

Criminal Activity

Conduct that constitutes an offense and is punishable by law, typically involving acts harmful or threatening to the public.