Compute the maximum amount of expenditures

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Question - Evergreen Corporation, a calendar year C corporation, was formed on May 23, 2018, and opened for business on July 1, 2018. After its formation but prior to opening for business, Evergreen incurred the following expenditures:

Accounting $2,300

Advertising 8,800

Employee payroll 6,100

Rent 1,400

Utilities 900

Round the per-month amount to two decimal places and use the rounded amount in subsequent computations. Round the final answer to the nearest dollar.

Assuming the company makes the § 195 election, compute the maximum amount of these expenditures that Evergreen can deduct in 2018?

Reference no: EM132497531

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