5 robert started an accounting firm in 2016 and

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5. Robert started an accounting firm in 2016 and organized as a partnership. Performance of services began on July 1, 2016. The following expenditures were associated with the partnership’s activities in 2016: Expense Date Amount April 1-June 30 rent March 1 $15,000 June 1-June 30 wages June 30 $25,000 April 1-June 30 utilities June 30 $800 Legal fees for partnership agreements June 25 $12,500 July 1-Sept. 30 rent July 1 $15,000 July 1-July 31 wages July 31 $50,000 July 1-Sept. 30 utilities Sept. 30 $1,600 a. What is the total amount of the start-up costs expenditures? What is the total amount of organizational expenditures? ( 5 points ) b. What amount of the start-up costs and organizational expenditures may the partnership immediately expense in 2016? ( 5 points ) c. What amount can the partnership deduct as amortization expense for the organizational expenditures and for the start-up costs for 2016 (not including the amount it immediately expensed)? ( 5 points ) d. What would be the total amount of organizational and start-up deduction allowed for 2016 (including both the portion immediately expensed and relevant amortization of remaining expenses), if Robert started a sole proprietorship instead of a partnership? ( 5 points ) ANSWERS :
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