1. Zig Corporation incurs advertising and training costs of $52,500 before its business actually begins. Zig...

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Accounting

1. Zig Corporation incurs advertising and training costs of$52,500 before its business actually begins. Zig Corporation beganbusiness on May 1, 2018. Compute the maximum amount of ZigCorporation’s deduction for start-up costs for 2018.
2. John Porter, the sole shareholder of Canit Inc., incurred thefollowing expenses for the year that were reimbursed by thecompany:
Parking tickets incurred while of business                                              $550
Traffic ticket for running a stop sign when going to a businessmeeting $150
Political contributions on behalf of the company$750
What is the amount of expenses that Canit Inc. can deduct?

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ANS TO QUES 1 Zig may deduct up to 5000 of startup costs including advertising and training cost in there first year of business ie 2018 and the rest must be depreciated over time that means cost of 47500 525005000 will be deducted in next 15 yearsper year See Answer

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1. Zig Corporation incurs advertising and training costs of $52,500 before its business actually begins. Zig...

90.2K

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Accounting

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