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 ofservices began on July 1, 2016. The following expenditures were associated with the partnership’s activities in 2016:ExpenseDateAmountApril 1-June 30 rentMarch 1$15,000June 1-June 30 wagesJune 30$25,000April 1-June 30 utilitiesJune 30$800Legal fees for partnership agreementsJune 25$12,500July 1-Sept. 30 rentJuly 1$15,000July 1-July 31 wagesJuly 31$50,000July 1-Sept. 30 utilitiesSept. 30$1,600a.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 partnershipimmediately 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 deductionallowed for 2016 (including both the portion immediately expensed and relevant amortization of remaining expenses), if Robert started a sole proprietorshipinstead of a partnership? (5points)ANSWERS:
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