JLK Partnership incurred $6,000 of organizational costs and $50,000 of startup costs in 2016 . JKL may deduct $5,000 each of organizational and startup costs, and the remaining costs ($1,000 of organizational costs and $45,000 of startup costs) may be amortized over 60 months
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: For organizational and startup costs, the first $5,000 may be deducted, provided total expenses in that category do not exceed $50,000 . If costs in the category exceed $50,000, the deduction is phased out, dollar-for-dollar. Any amount that may not be deducted is amortized over 180 months.
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What will be an ideal response?
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Answer the following statement true (T) or false (F)