Brown Corp., a calendar-year taxpayer, was organized and actively began operations on July 1, 2007, and incurred the following costs:
|
Legal fees to obtain corporate charter |
$40,000 |
|
Commission paid to underwriter |
25,000 |
|
Temporary directors’ meetings |
15,000 |
|
State incorporation fees |
4,400 |
For 2007, what amount should Brown Corp. deduct for organizational expenses?
- $1,980
- $2,814
- $5,940
- $6,812