Emerald Corporation,a Calendar Year C Corporation,was Formed and Began Operations

question 63

Multiple Choice

Emerald Corporation,a calendar year C corporation,was formed and began operations on April 1,2015.The following expenses were incurred during the first tax year (April 1 through December 31,2015) of operations. Expenses of temporary directors and of organizational meetings $27,000 Fee paid to the state of incorporation 1,000 Accounting services incident to organization 15,500 Legal services for drafting the corporate charter and bylaws 9,500 Expenses incident to the printing and sale of stock certificates 6,000 Assuming a § 248 election,what is the Emerald's deduction for organizational expenditures for 2015?

• A)$0
• B)$4,550
• C)$5,000
• D)$7,400
• E)None of the above

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Definitions:

Days

Units of time consisting of 24 hours, often used to specify timeframes or durations.

Financial Data

Numerical data detailing a company's financial status, operations, and liquidity, utilized for evaluation and decision-making purposes.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Financial Data

Numeric information related to financial aspects of a business, including income, expenses, assets, and liabilities.