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Green Corporation is incorporated on March 1 and begins business
on June 1. Green’s first tax year ends on October 31, i.e., a short
year. Green incurs the following expenses during the year:
 

Date

Type

Amount

February
March
March
April
December

Draft charter
Stock commission
Accounting fees to set up books
Temporary director fees
Charter modification fee

$  2,000 
30,000
  2,000
  2,000
   1,000

 
What is the deduction for organizational expenses if Green
chooses to deduct its costs as soon as possible?
A) $36,000
B) $5,028
C) $667
D) $500
 

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