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B only corporations that issue their audited

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Unformatted text preview: . Commissions paid by the corporation to an underwriter. CPA-02111 Explanation Choice "c" is correct. The costs of organizing the corporation are expensable (subject to the $5,000 limitation) and amortizable, but the costs of selling stock are not. The only expense listed that qualifies for expense/amortization is the legal fees for drafting the corporate charter; the others relate to the sale of stock. Choices "a", "b", and "d" are incorrect. These are expenses of selling the corporation's stock and are not a cost of organizing the corporation and therefore cannot be amortized. CPA-02112 Type1 M/C A-D 37. CPA-02112 ARE Nov 94 #46 Corr Ans: A PM#52 R 3-01 Page 34 With regard to consolidated tax returns, which of the following statements is correct? a. Operating losses of one group member may be used to offset operating profits of the other members included in the consolidated return. b. Only corporations that issue their audited financial statements on a conso...
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