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Exercise 21-20(Algorithmic)(LO.4) Candlewood LLC started business on December 1, and it adopted...

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Accounting

Exercise 21-20(Algorithmic)(LO.4)
Candlewood LLC started business on December 1, and it adopted a calendar tax year. During the year, Candlewood incurred $10,000 in legal fees for drafting the LLC's operating agreement and $5,000 in accounting fees for tax advice of an organizational nature, for a total of $15,000 of organizational costs. Candlewood also incurred $32,800 of preopening advertising expenses and $22,000 of salaries and training costs for new employees before opening for business, for a total of $54,800 of startup costs. The LLC wants 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.
How much can Candlewood deduct as organizational expenses? As startup expenses?
The LLC may deduct $fill in the blank 1
as organizational expenses and $fill in the blank 2
as startup expenses.
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