Lucy organized a new corporation. The corporation began business on May 1, 2019. She made the...

Lucy organized a new corporation. The corporation began business on May 1, 2019. She made the following expenditures associated with getting the corporation started:

Expense Date Amount

Legal drafting of corporate charter February 2 $28,000

Rental (April 2019) April 30 6,000

Organizational meeting April 30 3,500

Salaries and Wages (April 2019) April 30 8,000

Rental (May 2019) May 31 12,000

REQUIRED:

i What is the total amount of the start-up costs and organizational expenditures for Lucy's corporation

IL. What amount of start-up costs and organizational expenditures may the corporation immediately expense in 2019?

. What amount can the corporation deduct as amortization expense for the organizational expenditures and the start-up costs for the year 2019 (excluding the amount determined in part (b)]?

Solutions

Expert Solution

All answers are attached below

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Nicole organized a new corporation this year. The corporation began business on April 1, 2019. She made the...

Nicole organized a new corporation this year. The corporation began business on April 1, 2019. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $32,000 March 1 – March 30 wages March 30 $4,500 March 1 – March 30 rent March 30 $2,000 Stock issuance costs April 1 $20,000 April 1 – May 30 wages May 30 $12,000 What is the total amount of the start-up costs expenditures? What...

Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...

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 $ 32,000 March 1 – March 30 wages March 30 4,500 March 1 – March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1 – May 30 wages May 30 12,000...

Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...

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...

Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...

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 $ 39,500 March 1 – March 30 wages March 30 6,250 March 1 – March 30 rent March 30 2,750 Stock issuance costs April 1 26,000 April 1 – May 30 wages May 30 15,625...

Nicole organized a new corporation. The corporation began business on April 1 of year 1. She...

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 $ 39,000 March 1 – March 30 wages March 30 6,100 March 1 – March 30 rent March 30 2,700 Stock issuance costs April 1 27,000 April 1 – May 30 wages May 30 15,250...

Taylorly Corporation just began business and made the following four inventory purchases in May: May 1...

Taylorly Corporation just began business and made the following four inventory purchases in May: May 1 114 units $750 May 10 152 units 1020 May 15 152 units 1040 May 28 114 units 808 $3618 A physical count of merchandise inventory on May 30 reveals that there are 152 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for May is

On May 1, 2019, Goodman Co. began the manufacture of a new device known as “X”....

On May 1, 2019, Goodman Co. began the manufacture of a new device known as “X”. Goodman installed a standard costing system in accounting for manufacturing costs of its product X. The standard costs for one unit of X are as follows: Raw materials: 6 lbs. @ $1 per lb.* ……………………. $6.00 Direct labor: 1 hour @ $4 per hour* …………………. 4.00 Overhead: 75% of direct labor costs ……………… 3.00 * According to the standard: - One unit of X...

Holden Graham started The Graham Co., a new business that began operations on May 1. The...

Holden Graham started The Graham Co., a new business that began operations on May 1. The Graham Co. completed the following transactions during its first month of operations. May 1 H. Graham invested $42,500 cash in the company. 1 The company rented a furnished office and paid $2,200 cash for May’s rent.. 3 The company purchased $1,900 of office equipment on credit. 5 The company paid $780 cash for this month’s cleaning services. 8 The company provided consulting services for...

Gabi Gram started The Gram Co., a new business that began operations on May 1. The...

Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $42,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,300 cash for May’s rent. 3 The company purchased $1,910 of office equipment on credit. 5 The company paid $730 cash for this month’s cleaning services. 8...

Gabi Gram started The Gram Co., a new business that began operations on May 1. The...

Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $40,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,600 cash for May’s rent. 3 The company purchased $1,930 of office equipment on credit. 5 The company paid $750 cash for this month’s cleaning services. 8...

Subjects