Racine Started a New Business in the Current Year

question 72

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 these

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Definitions:

Fuel-Air Explosive

A type of weapon that disperses fuel into the air and ignites it, creating a large blast wave of high temperature and pressure.

Detonator

A device used to trigger an explosion in dynamite and other high explosives, typically initiating a larger, secondary explosive charge.

Lower Explosion Limit (LEL)

The lowest concentration of a particular gas or vapor in air that can produce a flash of fire in presence of an ignition source.