Racine Started a New Business in the Current Year

question 42

Multiple Choice

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23^rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

• A) $2,555.
• B) $3,544.
• C) $5,522.
• D) $52,000.
• E) None of the choices are correct.

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Definitions:

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions, including limiting strikes and requiring union leaders to swear they were not communists.

NATO

The North Atlantic Treaty Organization is a military alliance formed for mutual defense against aggression, primarily established in 1949.

Marshall Plan

An American initiative passed in 1948 to aid Western Europe, in which the U.S. gave over $12 billion for economic recovery post-World War II to counter the spread of communism.

Truman Doctrine

A United States policy, announced by President Truman in 1947, to provide military and economic assistance to countries threatened by communism.