Question

Wren Corporation incurs $54,000 startup expenditures. How much of this expenditure can be expensed immediately? A....

Wren Corporation incurs $54,000 startup expenditures. How much of this expenditure can be expensed immediately?

A. $4,000

B. $50,000

C. $1,000

D. $54,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

IRS allows us to deduct $5000 of start up expenses if total start up expenditure is $50000 or less and balance is to be amortized with in 180 months . In case total startup caost exceed $ 50000 then the amount will be reduced by the amount it has increased by 50000. In case of Wren Corporation   startup cost is 54000 then deduction amount would be$ (5000-(54000-50000)=$1000.  and balance 53000 would be amortized as $ 53000/180 =$294 per month

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When subsequent expenditure on intangible assets are incurred, the costs are: Select one: a. immediately expensed,...
When subsequent expenditure on intangible assets are incurred, the costs are: Select one: a. immediately expensed, rather than being capitalised. b. transferred to a revaluation reserve account. c. capitalised as part of the cost of the asset. d. debited to the retained earnings account.
In the current year the XYZ partnership incurs $35,000 of expenses that qualified as organizational expenses....
In the current year the XYZ partnership incurs $35,000 of expenses that qualified as organizational expenses. They are a calendar year partnership, and begin business in July of the current year. How much is their amortization of the organizational expenses in the current year, assuming they elect the maximum of each? Round to the nearest dollar. a. $180,000 b. $167 c. $1,167 d. $1,000
1. If you own a corporation, you can: A. lose your home if your company gets...
1. If you own a corporation, you can: A. lose your home if your company gets sued B. raise money by selling stock C. avoid double taxation D. none of the above 2. The sole proprietorship: A. is easy to start B. does not cost too much to open C. incurs unlimited personal liability for the owner D. all of the above 3. The ____________ is the form of ownership used by the majority of businesses in the country. A....
What is the​ multiplier? The multiplier is the amount by which the change in​ ______ expenditure...
What is the​ multiplier? The multiplier is the amount by which the change in​ ______ expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real GDP. What does it​ determine? For every dollar increase in​ ______ expenditure, the multiplier determines the increase in real GDP. A. ​induced; induced B. ​induced; autonomous C. ​autonomous; induced D. ​autonomous; autonomous Why does it​ matter? The multiplier matters because we can use it to determine by how much we should...
Koral Corporation can invest in a project that costs $400,000. The project is expected to have...
Koral Corporation can invest in a project that costs $400,000. The project is expected to have an after-tax return of $250,000 in each of years 1 and 2. Koral normally uses a 10 percent discount rate to evaluate projects but feels it should use 12 percent to compensate for inflation. How much difference does the rate make in the after-tax net present value of the project? a. $50,000 b. $22,500 c. $20,000 d. $11,250
QUESTION 3 For the typical person, RMR accounts for about how much of the total daily...
QUESTION 3 For the typical person, RMR accounts for about how much of the total daily energy expenditure? A. 60 to 75% B. 10% C. 15 to 30% D. 90%
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1.
Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios.(Leave no answer blank. Enter zero if applicable.)a. She incurred start-up costs of $4,100.b. She incurred start-up costs of $45,250.c. She incurred start-up costs of $53,650.d. She incurred start-up costs...
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 8.0​% per year on your investments and you plan to retire in 34 ​years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you​ retire? b. ​ If, instead of investing $4,000 per​ year, you wanted...
The correct answer doesn't interest me as much as understanding how to work out the problem....
The correct answer doesn't interest me as much as understanding how to work out the problem. In fact, according to other resources, the answers are D & B (in that order). I'm struggling to understand how to apply principles from microeconomics to work out the problem for myself. Any help would be much appreciated. -In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is constant at $10.00...
If a $1,000, 8% semi-annual bond matures, how much money will the bondholder receive as a...
If a $1,000, 8% semi-annual bond matures, how much money will the bondholder receive as a final payment? ____ A)     $1,000 B)     $1,040 C)     $1,080 D)    Undetermined due to the unknown term of the bond
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT