Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2019.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2019): $\begin{array}{lr}
\text { Expenses of temporary directors and organizational meetings } & \$ 25,000 \
\text { Incorporation fee paid to state } & 2,000 \
\text { Expenses incurred in printing and selling stock certificates } & 10,000 \
\text { Accounting services incident to organization } & 12,000
\end{array}$
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2019?
expenditures?
b. Same as a., except that Warbler also incurred in 2019 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2019 deduction for organizational

Question

Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2019.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2019): $\begin{array}{lr}
\text { Expenses of temporary directors and organizational meetings } & \$ 25,000 \
\text { Incorporation fee paid to state } & 2,000 \
\text { Expenses incurred in printing and selling stock certificates } & 10,000 \
\text { Accounting services incident to organization } & 12,000
\end{array}$ 
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2019?
expenditures?
b. Same as a., except that Warbler also incurred in 2019 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2019 deduction for organizational

Quizplus · Accepted Answer

The Answer of Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2019.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2019): $\begin{array}{lr}
\text { Expenses of temporary directors and organizational meetings } & \$ 25,000 \
\text { Incorporation fee paid to state } & 2,000 \
\text { Expenses incurred in printing and selling stock certificates } & 10,000 \
\text { Accounting services incident to organization } & 12,000
\end{array}$ 
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2019?
expenditures?
b. Same as a., except that Warbler also incurred in 2019 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2019 deduction for organizational

Warbler Corporation, an Accrual Method Regular Corporation, Was Formed and Began