Exercise 14-5 (Algorithmic) (LO. 3) Candlewood LLC began its business on March 1, 2022; and it uses a calendar tax and an accounting year. Candlewood incurred $13,800 in legal fees for drafting the LLC's operating agreement and $6,900 in accounting fees for tax advice of an organizational nature, for a total of $20,700 of organizational costs. Candlewood also incurred $22,000 of preopening advertising expenses and $31,000 of salaries and training costs for new employees before opening for business, for a total of $53,000 of startup costs. The LLC desires to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. Compute Candlewood's deductions for the first year of its operations for: a. Organizational expenditures: s b. Startup expenses: :

Exercise 14-5 (Algorithmic) (LO. 3) Candlewood LLC began its business on March 1, 2022; and it uses a calendar tax and an accounting year. Candlewood incurred $13,800 in legal fees for drafting the LLC's operating agreement and $6,900 in accounting fees for tax advice of an organizational nature, for a total of $20,700 of organizational costs. Candlewood also incurred $22,000 of preopening advertising expenses and $31,000 of salaries and training costs for new employees before opening for business, for a total of $53,000 of startup costs. The LLC desires to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. Compute Candlewood's deductions for the first year of its operations for: a. Organizational expenditures: s b. Startup expenses: :

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 34P

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