A newly formed corporation incurs the following expenses dur

A newly formed corporation incurs the following expenses during formation: 3,135 in legal and accounting fees to incorporate, 2,676 in fees paid to the state, and 3,676 to issue stock. How much of these costs may be expensed on the first tax return of the corporation?

Solution

Costs expensed on the first tax return of the corporation = Legal and accounting fees to incorporate + Fees paid to the state = 3,135 + 2,676 = 5,811