Dilly’s dream was to open a cookie shop, so she did her homework carefully be-fore finally opening “Dilly’s Delights” on July 1, 2019. Before that date she had incurred the following “soft costs” – $12,000 realtor’s fee for finding a storefront to rent, $16,000 attorneys’ fees for negotiating a lease and trademark services, $8,000 wage expense for employees during the pre-opening period, and $18,000 for pre-opening TV and other advertising. Calculate and state the exact amount that you, in preparing Dilly’s 2019 return, will enter as her 2019 start-up costs deduction. Note: There’s no useful reason to show your work here because there’s only one correct dollar-amount answer; no explanation of an incorrect answer will help.
Dilly’s dream was to open a cookie shop, so she did her homework carefully be-fore finally opening “Dilly’s Delights” on July 1, 2019. Before that date she had incurred the following “soft costs” – $12,000 realtor’s fee for finding a storefront to rent, $16,000 attorneys’ fees for negotiating a lease and trademark services, $8,000 wage expense for employees during the pre-opening period, and $18,000 for pre-opening TV and other advertising. Calculate and state the exact amount that you, in preparing Dilly’s 2019 return, will enter as her 2019 start-up costs deduction. Note: There’s no useful reason to show your work here because there’s only one correct dollar-amount answer; no explanation of an incorrect answer will help.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 56P: Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters,...
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Dilly’s dream was to open a cookie shop, so she did her homework carefully be-fore finally opening “Dilly’s Delights” on July 1, 2019. Before that date she had incurred the following “soft costs” –
- $12,000 realtor’s fee for finding a storefront to rent,
- $16,000 attorneys’ fees for negotiating a lease and trademark services,
- $8,000 wage expense for employees during the pre-opening period, and
- $18,000 for pre-opening TV and other advertising.
Calculate and state the exact amount that you, in preparing Dilly’s 2019 return, will enter as her 2019 start-up costs deduction.
Note: There’s no useful reason to show your work here because there’s only one correct dollar-amount answer; no explanation of an incorrect answer will help.
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