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:

Marginal Utility

The extra utility or satisfaction derived from using or consuming one additional unit of a good or service beyond what was previously consumed.

Total Utility

The total satisfaction received from consuming a particular amount of goods or services.

Marginal Utility

The additional satisfaction or benefit a consumer derives from consuming one more unit of a good or service.

Additional Utility

The extra satisfaction or pleasure a person receives from consuming an additional unit of a good or service.