Cardinal, LLC incurred $20,000 of startup expenses, $3,000 of organizational cos
ID: 2367015 • Letter: C
Question
Cardinal, LLC incurred $20,000 of startup expenses, $3,000 of organizational costs, and paid $10,000 in transfer taxes to change the title (ownership) of a building contributed by one of the LLC's members. Which of the following statements is correct regarding these three amounts? Answer Cardinal can deduct $5,000 of the startup expenses. Cardinal can amortize $15,000 of the startup expenses over 180 months. Cardinal may deduct the full amount of the organizational costs. Cardinal can capitalize the $10,000 tax paid as a part of the depreciable basis of the building. All of the above statements are true.Explanation / Answer
Cardinal can capitalize the $10,000 tax paid as a part of the depreciable basis of the building