Beech Corporation, an accrual basis taxpayer, was organized and began business o

Question

Beech Corporation, an accrual basis taxpayer, was organized and began business on July 1, 2014. During 2014, the corporation incurred the following expenses:

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 2014. Round per month calculation to two decimal places. Round your final answer to the nearest dollar.
$

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

Explanation / Answer

Since expenses for the sale of stock cannot be amortised hence these cannot be amortised .Hence deductible expenses are

State fee for incorporation                              $500

Legal & accounting fees incidendent

to organisation                                                $1800

Orgainsation meeting expense                         750

total                                                                 $3050

Total amount the can be deducted $3050/ 15 = $203

or $3050/ 180 = $16.94

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