Mr. Z, a calendar year taxpayer, opened a new car wash. Prior tothe car...

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Accounting

Mr. Z, a calendar year taxpayer, opened a new car wash. Prior tothe car wash’s grand opening on October 8, Mr. Z incurred variousstart-up expenditures (rent, utilities, employee salaries,supplies, and so on). In each of the following cases, compute Mr.Z’s first-year deduction with respect to these expenditures. (Donot round intermediate calculations. Round your final answers tothe nearest whole dollar amount.)
A) The start-up expenditures totaled $4,920. B) The start-upexpenditures totaled $33,440. C) The start-up expenditures totaled$52,780. D)The start-up expenditures totaled $94,500.
A) deducction =
B) deduction
C) deducton D) DEDUCTION

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4.1 Ratings (607 Votes)

A Mr Z can deduct the entire 4920 Startup expenditures B Mr Z can deduct 5000 of the expenditure and must capitalize the 28440 remainder he can elect the capitalized cost See Answer

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In: AccountingMr. Z, a calendar year taxpayer, opened a new car wash. Prior tothe car wash’s...Mr. Z, a calendar year taxpayer, opened a new car wash. Prior tothe car wash’s grand opening on October 8, Mr. Z incurred variousstart-up expenditures (rent, utilities, employee salaries,supplies, and so on). In each of the following cases, compute Mr.Z’s first-year deduction with respect to these expenditures. (Donot round intermediate calculations. Round your final answers tothe nearest whole dollar amount.)A) The start-up expenditures totaled $4,920. B) The start-upexpenditures totaled $33,440. C) The start-up expenditures totaled$52,780. D)The start-up expenditures totaled $94,500.A) deducction =B) deductionC) deducton D) DEDUCTION