Question

Special Deductions and Limitations (LO 11.3)

Beech Corporation, an accrual basis calendar year taxpayer, was organized and began business on August 1st of the current calendar tax year. During the current year, the corporation incurred the following expenses:

State fees for incorporation	$ 1,405
Legal and accounting fees incident to organization	4,918
Expenses for the sale of stock	5,620
Organizational meeting expenses	2,108

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 current calendar tax year.

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

Answer 1