Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2012. The following expenses were incurred during the first tax year (April 1 through December 31, 2012) of operations: Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2012?
A)$0.
B)$4,550.
C)$5,000.
D)$7,400.
E)None of the above.

Question

Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2012. The following expenses were incurred during the first tax year (April 1 through December 31, 2012) of operations:  Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2012?
A)$0. 
B)$4,550. 
C)$5,000. 
D)$7,400. 
E)None of the above.

Quizplus · Accepted Answer

The Answer of Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2012. The following expenses were incurred during the first tax year (April 1 through December 31, 2012) of operations:  Assuming a § 248 election, what is the Emerald's deduction for organizational expenditures for 2012?
A)$0. 
B)$4,550. 
C)$5,000. 
D)$7,400. 
E)None of the above.

Emerald Corporation, a Calendar Year C Corporation, Was Formed and Began