Check my work 15 Required information Part 1 of 5 The following information appl
ID: 2546843 • Letter: C
Question
Check my work 15 Required information Part 1 of 5 The following information applies to the questions displayed below. Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including amortization) this year in the following alternative scenarios. (Leave no answer blank. Enter zero if applicable.) eBook Print a. She incurred start-up costs of $3,800. t of start-up costs immediately expensedExplanation / Answer
15 a. Amount of start up cost immediately expensed = $ 3,800 Organisational expense Description Amount Explaination 1 Maximum Immediate Expense $ 5,000 2 Total Start up cost $ 3,800 Given in Question 3 Phase - out threshold $ 50,000 4 Immediate Expense Phase - out $ 0 (2) - (3) 5 Allowable Immediate Expense $ 3,800 Lesser of (2) or [(1) minus (4)] 16 b. Amount of start up cost immediately expensed = $ 5,000 Organisational expense Description Amount Explaination 1 Maximum Immediate Expense $ 5,000 2 Total Start up cost $ 44,250 Given in Question 3 Phase - out threshold $ 50,000 4 Immediate Expense Phase - out $ 0 (2) - (3) 5 Allowable Immediate Expense $ 5,000 Lesser of (2) or [(1) minus (4)] 17 c. Amount of start up cost immediately expensed = $ 1,950 Organisational expense Description Amount Explaination 1 Maximum Immediate Expense $ 5,000 2 Total Start up cost $ 53,050 Given in Question 3 Phase - out threshold $ 50,000 4 Immediate Expense Phase - out $ 3,050 (2) - (3) 5 Allowable Immediate Expense $ 1,950 Lesser of (2) or [(1) minus (4)] 18 d. Amount of start up cost immediately expensed = $ 0 Organisational expense Description Amount Explaination 1 Maximum Immediate Expense $ 5,000 2 Total Start up cost $ 64,500 Given in Question 3 Phase - out threshold $ 50,000 4 Immediate Expense Phase - out $ 14,500 (2) - (3) 5 Allowable Immediate Expense $ 0 Lesser of (2) or [(1) minus (4)] 19 e. a $ 3,800 b $ 5,000 c $ 1,950 d $ 0 If these were organisational expenditure instead of start up costs, the answers would still remain same. Note, however, that organisational expenditures only apply to corporations and partnerships and do not apply to business organised as sole properietorships.