Ficus, Inc

question 70

Multiple Choice

Ficus, Inc.began business on March 1, 2018, and elected to file its income tax return on a calendar-year basis.The corporation incurred $800 in organizational expenditures.Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in 2018 is:

• A)$4.44
• B)$44.44
• C)$53.28
• D)$800.00
• E)None of the above​

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Definitions:

Profit-maximizing Equilibrium

A state in which a firm achieves the highest possible profit, given its production costs and market conditions.

Appliance Manufacturer

A company that produces electrical machines and devices for domestic use.

Variable Resources

Inputs or factors of production that can be adjusted in the short term to meet changes in the level of output, such as labor and raw materials.

MRPs

Marginal revenue products, a measure of the additional revenue generated by employing an additional unit of a resource or factor of production.