Teal Corporation is incorporated in November 2016.The following formation expenses are incurred in 2016:
Legal and accounting expenses incident to organization
$4,000
Expenses of temporary directors and organizational meetings of directors and shareholders
2,000

Expenditures connected with the transfer of assets to Teal
3,000

Except for the legal and accounting expenses which are paid in 2017,all other expenses are paid in 2016.If Teal Corporation uses the cash basis and adopts a calendar year for tax purposes,the amount of organizational expenditures it can elect to expense for 2016 is:

Question

Teal Corporation is incorporated in November 2016.The following formation expenses are incurred in 2016:
Legal and accounting expenses incident to organization
$4,000
Expenses of temporary directors and organizational meetings of directors and shareholders
2,000
​
Expenditures connected with the transfer of assets to Teal
3,000
​
Except for the legal and accounting expenses which are paid in 2017,all other expenses are paid in 2016.If Teal Corporation uses the cash basis and adopts a calendar year for tax purposes,the amount of organizational expenditures it can elect to expense for 2016 is:

Quizplus · Accepted Answer

The Answer of Teal Corporation is incorporated in November 2016.The following formation expenses are incurred in 2016:
Legal and accounting expenses incident to organization
$4,000
Expenses of temporary directors and organizational meetings of directors and shareholders
2,000
​
Expenditures connected with the transfer of assets to Teal
3,000
​
Except for the legal and accounting expenses which are paid in 2017,all other expenses are paid in 2016.If Teal Corporation uses the cash basis and adopts a calendar year for tax purposes,the amount of organizational expenditures it can elect to expense for 2016 is:

Teal Corporation Is Incorporated in November 2016