Question

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: (Leave no answer blank. Enter zero if applicable.)

Expense	Date	Amount
Attorney fees for articles of incorporation	February 10	$	37,000
March 1 – March 30 wages	March 30		5,350
March 1 – March 30 rent	March 30		2,500
Stock issuance costs	April 1		31,000
April 1 – May 30 wages	May 30		13,375

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 determined in part b)? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)

Start-up costs amortized:

Organizational expenditures amortized:

Answer 1

Calculation of Amortization for Period Ended 31, December	31/12/2020
Particulars	Date	Amount	Type	Total Amortization Days	1 Years Amortization Days	1 Years Amortization Amount
Attorney fees for articles of incorporation	10, Feb	$ 37,000.00	Organisational Expenses	5475	325	$      2,196.00
Wages-1 Mar-30 Mar	30, Mar	$    5,350.00	Start-Up Exp	5475	276	$          270.00
Rent-1 Mar-30 Mar	30, Mar	$    2,500.00	Start-Up Exp	5475	276	$          126.00
Stock issuance costs	01, Apr	$ 31,000.00	Organisational Expenses	5475	274	$      1,551.00
Wages-1 Apr-30 May	01, May	$ 13,375.00	Start-Up Exp	5475	244	$          596.00
	Total	$ 89,225.00				$      4,739.00
		Amount	Particulars	1 Years Amortization Amount	1 Years Deduction Allowed	Total Amortization 1 Year
		$ 68,000.00	Organisational Expenses	$                  3,747.00	$                   -	$      3,747.00
		$ 21,225.00	Start-Up Exp	$                     866.00	$      5,000.00	$      5,866.00