Emerald Corporation, a Calendar Year C Corporation, Was Formed and Began

question 79

Multiple Choice

Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2012. The following expenses were incurred during the first tax year (April 1 through December 31, 2012) of operations: Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2012?

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

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Definitions:

Bearer

An individual in possession of an instrument, such as a check or bond, that is not made out to a specific payee.

Certified Cheque

A cheque guaranteed by a bank, indicating that the funds are available and have been set aside for the payee.

Bill Drawn

A document requesting the payment of money, typically used in international trade, specifying the amount and terms of payment.

Drawee

is the party, often a bank, required to pay the monetary amount specified in a check or draft.