Black Corporation, an Accrual Basis Taxpayer, Was Formed and Began

question 67

True/False

Black Corporation, an accrual basis taxpayer, was formed and began operations on February 1, 2012. During its first year of operations (February 1 - December 31, 2012), Black incurred the following expenses: fee paid to state of incorporation of $2,000, accounting and legal services incident to organization of $9,000, and expenses related to the printing and sale of stock certificates of $10,000. Black has $11,000 of qualified organizational expenditures that it may elect to amortize.

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Definitions:

Social Category

A grouping of individuals sharing a common characteristic or trait but not necessarily interacting with each other or identifying as a group.

German Jews

Refers to Jews who are from Germany or of German descent, historically significant due to their experiences, particularly during the Holocaust.

Non-Jews

Individuals who do not adhere to or are not part of the Jewish faith or ethnic group.

Bureaucratic Inertia

Refers to the tendency of large, rigid bureaucracies to continue their policies even when their clients’ needs change.