Silo Corp. was organized on March 1, 2007, began doing business on September 1, 2007, and elected to file its income tax return on a calendar-year basis. The following qualifying organizational expenditures were incurred in organizing the corporation:

July 1, 2007

$3,000

September 3, 2007

5,600

The maximum allowable deduction for organizational expenditures for 2007 is

  1. $ 600
  2. $3,000
  3. $5,000
  4. $5,080