Deduction for organizational expenses

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Coral Corporation, a calendar year C corporation, was formed and began operations on July 1, 2010 The following expenses were incurred during the first tax year (July 1 to December 31, 2010) of operations:

Expenses of temporary directors and of organizational meetings $ 9,000
Fee paid to the state of incorporation &n bsp; $1,000
Accounting services incident to organization 2,500
Legal services for drafting the corporate charter and bylaws 3,500
Expenses incident to the printing and sale of stock certificates 4,000

Assume Coral Corporation makes an appropriate and timely election under § 248. What is Coral's deduction for organizational expenditures for 2010?

a. $0.

b. $533.

c. $5,367.

d. $5,500.

e. None of the above.

Reference no: EM13156365

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