Alabaster Corporation,a calendar year taxpayer,was formed on July 1,2014,and incurred organizational expenditures of $52,000.Its deduction for these expenditures for 2014 can be a:

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On a dollar-for-dollar basis,the excess organizational expenditures over $50,000 reduced the $5,000 immediate expensing allowed.Thus,$3,000 [$5,000 - ($52,000 - $50,000)] is the amount that can be immediately expensed.The balance of $49,000 ($52,000 - $3,000)can be amortized over 15 years (180 months)-only 6 months being allowed for 2014.The minimum deduction is zero (choice d. ),and this occurs if no election is made.

Alabaster Corporation,a Calendar Year Taxpayer,was Formed on July 1,2014,and Incurred