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(3) Beech Corporation, an accrual basis taxpayer, was organized and began business on July 1, 2010. During 2010, the corporation incurred the following expenses: State fees for incorporation $ 500 Legal and accounting fees incident to organization 1,800 Expenses for the sale of stock 2,100 Organizational meeting expenses 750 Assuming that Beech Corporation does not elect to expense but chooses to amortize organizational-expenditures over 15 years, calculate the corporation's deduction for its calendar tax year 2010.
ANSWER:
(500+1800+750)=$3050
(3050/180)=$16.94 per month
($16.94 x 6 months)= $101.64 Can be deducted in current year as ( the expenses for the sale of stock are not organizational expenditures)
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