Question

Which of the following is not an organizational cost?

Question 1 options:

	State costs of incorporation
	Costs of organizational meetings
	Expenses of temporary directors
	Legal expenses for setting up the corporation
	Costs of issuing or selling stock

Question 2 (4 points)

The tax rate on a professional service corporation's taxable income of $40,000 is 15%.

Question 2 options:

	True
	False

Question 3 (4 points)

A corporation must make estimated tax payments when it expects its estimated income tax minus credits equal or exceed:

Question 3 options:

	$250.
	$500.
	$750.
	$1,000.
	none of the above.

Answer 1

Hi,

As per policy we will solve only first question here.

Organizational Costs are the costs which is incurred to set up or start an organization.

Such as legal cost, share issuing or temp directors expense.

So out of the option only costs of organizational meeting is not part of organizational cost.

Hence 2nd option is correct here.

Thanks