Question

Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.(A) 240(B) 180(C) 120(D) 60

Answer 1

The correct answer is letter "B": 180.

Step-by-step explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).