Black Corporation, an accrual basis taxpayer, was formed and began operations on February 1, 2012. During its first year of operations (February 1 - December 31, 2012), Black incurred the following expenses: fee paid to state of incorporation of $2,000, accounting and legal services incident to organization of $9,000, and expenses related to the printing and sale of stock certificates of $10,000. Black has $11,000 of qualified organizational expenditures that it may elect to amortize.

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Black Corporation has $11,000 of qualified organizational expenditures that it may elect to amortize. The expenses incurred for state incorporation fee, accounting and legal services incident to organization, and expenses related to the printing and sale of stock certificates are all qualified organizational expenditures that can be amortized.

Black Corporation, an Accrual Basis Taxpayer, Was Formed and Began