Warbler Corporation,an Accrual Method Regular Corporation,was Formed and Began Operations

question 82

Essay

Warbler Corporation,an accrual method regular corporation,was formed and began operations on March 1,2015.The following expenses were incurred during its first year of operations (March 1 - December 31,2015): ​ Expenses of temporary directors and organizational meetings $25,000 Incorporation fee paid to state 2,000 Expenses incurred in printing and selling stock certificates 10,000 Accounting services incident to organization 12,000 ​
a.Assuming a valid election under § 248 to amortize organizational expenditures,what is the amount of Warbler's deduction for 2015?
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a. ,except that Warbler also incurred in 2015 legal fees of $15,000 for the drafting of the corporate charter and bylaws.What is the amount of Warbler's 2015 deduction for organizational expenditures?
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b.
Same as

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Definitions:

Tax Reform Act

Legislation aimed at adjusting tax policies, which can include changes to tax rates, tax credits, and deductions to achieve economic or social objectives.

Corporate Income Tax

A tax imposed on the net income of a company derived from its business activities within a country.

Adam Smith

An 18th-century Scottish economist and philosopher, known as the "Father of Economics," who wrote "The Wealth of Nations" and is credited with founding modern economic theory.

Economic Role

The function or position an entity or individual plays within an economic system, influencing how resources are distributed and utilized.