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

question 81

Multiple Choice

Emerald Corporation,a calendar year C corporation,was formed and began operations on July 1,2011.The following expenses were incurred during the first tax year (July 1 through December 31,2011) of operations: Assuming a § 248 election,what is the Emerald's deduction for organizational expenditures for 2011?

• A) $0.
• B) $533.
• C) $5,367.
• D) $5,500.
• E) None of the above.

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Definitions:

Deregulation

The process of removing government regulations, oversight, and involvement from an industry.

Subsidization

Financial assistance granted by the government or an organization to support an economic sector, business, or consumer, making the goods or services more affordable.

Capitalist States

Countries where economic systems are based on private ownership and the free market determines allocation of resources.

Authoritarian States

Nations where political power is concentrated in a single authority, with limited personal freedoms.