McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 35

Nicole organized a new corporation.The corporation began business on April 1 of year 1.She made the following expenditures associated with getting the corporation started: a.What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?
b.What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1?
c.What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 (not including the amount it immediately expensed)?
d.What would be the allowable organizational expenditures, including immediate expensing and amortization, if Ingrid started a sole proprietorship instead?