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jebsen incorporated was organized on june 1 and began business on august 10. jebsen elected a calendar year for tax purposes. the corporation incurred $25,160 of legal and other professional fees attributable to its formation. how much of these costs can jebsim deduct on its first tax return?

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If jebsen elected a calendar year for tax purposes. the corporation incurred $25,160 of legal and other professional fees attributable to its formation. The amount of this costs that  jebsim can deduct on its first tax return is $5,560.

What is tax return?

Tax return can be defined as the money a person remit or pay to the federal government or state government.

Now let calculate the amount that he can deduct from its first tax return using this formula

Amount deducted = Organizational cost + Amortization deduction

Let plug in the formula

Amount deducted = $5,000 + [($25,160 -$5,000)/180 months × 5 months)]

Amount deducted = $5,000 + ($20,160 /180 months × 5 months)

Amount deducted = $5,000 + $560

Amount deducted = $5,560

(Note that the five months begins from August to December 31)

Therefore the deducted amount is $5,560.

Learn more about tax return here: https://brainly.com/question/27300507

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