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

question 97

Multiple Choice

Emerald Corporation,a calendar year C corporation,was formed and began operations on April 1,2017.The following expenses were incurred during the first tax year (April 1 through December 31,2017) of operations.
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Assuming a § 248 election,what is the Emerald's deduction for organizational expenditures for 2017?

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

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Definitions:

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

National Labor Relations

Refers to the field of law and policy concerning how labor unions and employers interact in the United States, significantly shaped by the National Labor Relations Act (NLRA) of 1935.

Bilateral Monopoly

A market structure involving a single buyer and a single seller, leading to unique negotiation dynamics since both parties have significant market power.

Disruptive Strikes

Work stoppages initiated by employees to protest against their employers, with the aim of causing enough disruption to gain bargaining power.