Hornbill Corporation, a cash basis and calendar year C corporation, was formed and began operations on May 1, 2018. Hornbill incurred the following expenses during its first year of operations (May 1 - December 31, 2018): temporary directors meeting expenses of $10,500, state of incorporation fee of $5,000, stock certificate printing expenses of $1,200, and legal fees for drafting corporate charter and bylaws of $7,500. Hornbill Corporation's 2018 deduction for organizational expenditures is $5,800.

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Hornbill Corporation's organizational expenditures include the temporary directors meeting expenses, state of incorporation fee, stock certificate printing expenses, and legal fees for drafting corporate charter and bylaws. However, the deduction for organizational expenditures is limited to $5,800 for the first year of operations. Therefore, the statement that Hornbill Corporation's 2018 deduction for organizational expenditures is $5,800 is true.

Hornbill Corporation, a Cash Basis and Calendar Year C Corporation