Candlewood llc started business on september 1, and it adopted a calendar tax year. during the year, candlewood incurred $6,500 in legal fees for drafting the llc’s operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. the llc wants to take the largest deduction available for these costs. how much can candlewood deduct as organizational expenses? as startup expenses?

Organization expenses    $5,100

Startup expenses     $1,700

Explanation:

Calculation of organisation expenses and startup expenses

Particulars    Calculations    Amount

Actual expense                      $54,500

Reduced for startup upto         $50,000    $5,000

1. LLC may deduct    ($9,500 - $5,000)*4/180  $100

Organization expenses  ($5000 + $100)  $5,100

2. Deduction for startup  ($5,000 - $4,500)  $500

Write off during the year  $54,000*4/180  $1,200

Startup expenses          $1,700

NB: Startup expenses are all expenses incurred for the start-up of the business are known as the startup expense which is related to the existing expense of business and will be approved after the firm.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi