Sammy wants to open a new café and call it “Catpuccino Café….
Sammy wants to open a new café and call it “Catpuccino Café.” The café will use a calendar year tax year. Before he opens the doors to customers on July 1, Year 1, he has to make several expenditures throughout Year 1 to prepare for the business’s opening:Expense Date AmountLegal fees for articles of incorporation January 1 $13,000Monthly rent for each month in Year 1 15th of each month $2,000/month Wage costs for each month in Year 1 15th of each month $750/month Ignoring your answers to prior questions, assume that in Year 1 there were start up costs of $10,000. Assuming that Sammy doesn’t immediately expense any of the start up costs in Year 1, how much amortization expense will he have for the start up costs in Year 1? Remember to round to the nearest whole dollar.Fill in the blank: _________ Answer:
Read Details