So Becker says,
$5000 for start up costs & $5000 for organization expenditures are deductible.
Krisit, a newly organized corporation was formed on June 30, year 1, and began doing business on July 1, year 1, and incurred the following expenses:
Legal fees for drafting corporate charter $15,000
Fees paid for accounting services $ 5,000
Fees paid to state of incorporation $ 3,000
Cost of selling shares of stock $10,000
What is the amount she can deduct?
Answer given by Becker is $5,600
15000+5000+3000 = 23000.
23000 - 5000 (shouldn't that be 10,000?) = 18000
18000/180 = 100 x 6=600
5000+600 = 5600.
I'm confused as to why it's $5600 and not $10,433 (23,000 - 10,000 = 13000. (13000/180) x 6).
