In: Accounting
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)]?