Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2018.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2018):

a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2018?
b. Same asa., except that Warbler also incurred in 2018 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2018 deduction for organizational expenditures?

Question

Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2018.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2018):
  
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2018?
b. Same asa., except that Warbler also incurred in 2018 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2018 deduction for organizational expenditures?

Quizplus · Accepted Answer

The Answer of Warbler Corporation, an accrual method regular corporation, was formed and began operations on March 1, 2018.
The following expenses were incurred during its first year of operations (March 1 - December 31, 2018):
  
a. Assuming a valid election under § 248 to amortize organizational expenditures, what is the amount of Warbler's deduction for 2018?
b. Same asa., except that Warbler also incurred in 2018 legal fees of $15,000 for the drafting of the corporate charter and bylaws. What is the amount of Warbler's 2018 deduction for organizational expenditures?

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