ACCT 730 - Week 4

ACCT 730 - Week 4 - ACCT 730 PROBLE M SET #4 Chapter 10 -...

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ACCT 730 PROBLE M SET #4 Chapter 10 - Problems 14, 18, 19, and 27 10-#14: Types of cost that the partnership is likely to incur are: - Organizational costs such as forming the partnership - Syndication costs such as admitting partners to the partnership, marketing and selling partnership units to propestive partners - Startup costs such as acquiring assets, starting business operations, negotiating contracts - Acquisition costs of depreciable assets For organizational costs, the partnership may elect to deduct up to $5,000 of the costs in the year in which it begins business. However, this amount will be reduced by the organizational costs that exceed $50,000. Any left-over amount could be amortized over 180 months beginning with the month the partnership starts business (60 months if incurred before October 22, 2004). For startup costs that are incurred after the entity is formed but before it begins business, the partnership may elect to deduct up to $5,000 of startup costs in the year it begins business. However, this amount has to be reduced by the startup costs that exceed $50,000. Any left-over amount would be amortized over 180 months beginning with the month in which the partnership begins business (60 months if incurred after before October 23,
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This note was uploaded on 04/07/2011 for the course ACCT 640 taught by Professor N/a during the Spring '11 term at Davenport.

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ACCT 730 - Week 4 - ACCT 730 PROBLE M SET #4 Chapter 10 -...

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