Saguaro Corporation,a cash basis and calendar year taxpayer,was formed and began operations on August 1,2008.Saguaro incurred the following expenses during its first year of operations (August 1-December 31,2008):
If Saguaro Corporation makes a timely election under § 248 to amortize qualifying organizational expenses,how much may the corporation deduct for tax year 2008?
A)$4,078.
B)$5,000.
C)$6,314.
D)$6,458.
E)None of the above.

Question

Quizplus · Accepted Answer

Qualifying organizational expenditures include these items: 11ea7f05_2e4d_67ad_92e1_3fe16272b7a1_TB4123_00 
Since an appropriate and timely election under § 248(c)was made,the amount that Saguaro Corporation may write off for the tax year 2008 is determined as follows: 11ea7f05_2e4d_67ae_92e1_83a4dd67941c_TB4123_00

Saguaro Corporation,a Cash Basis and Calendar Year Taxpayer,was Formed and Began