Drab Corporation, a calendar year and cash basis taxpayer, is formed in December 2017. In the same month, expenses are incurred as follows:

a.How much qualifies as organizational expenditures that can be deducted or amortized over a period of 180 months or more?
b.Would it matter if some of these expenses were not paid until 2018?

Question

Drab Corporation, a calendar year and cash basis taxpayer, is formed in December 2017. In the same month, expenses are incurred as follows:
​
  
a.How much qualifies as organizational expenditures that can be deducted or amortized over a period of 180 months or more?
b.Would it matter if some of these expenses were not paid until 2018?

Quizplus · Accepted Answer

The Answer of Drab Corporation, a calendar year and cash basis taxpayer, is formed in December 2017. In the same month, expenses are incurred as follows:
​
  
a.How much qualifies as organizational expenditures that can be deducted or amortized over a period of 180 months or more?
b.Would it matter if some of these expenses were not paid until 2018?

Drab Corporation, a Calendar Year and Cash Basis Taxpayer, Is