Orange Corporation begins business on April 2,2014.The corporation has startup expenditures of $64,000 which it incurred last year.If Orange Corporation elects § 195,determine the total amount that Orange may deduct in 2014.

Question

Quizplus · Accepted Answer

Deductible amount [$5,000 - ($64,000 - $50,000)] $ -0-
Amortizable amount [($64,000 - $0)/180 × 9 months] 3,200
Total deduction $3,200

Orange Corporation Begins Business on April 2,2014