(Solution) - Delta Corporation incorporates on January 7 begins business on July -(2025 Original AI-Free Solution)

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Delta Corporation incorporates on January 7, begins business on July 10, and elects to have its initial tax year end on October 31. Delta incurs the following expenses between January and October related to its organization during the current year:

a. What alternative treatments are available for Delta?s expenditures?
b. What amount of organizational expenditures can Delta Corporation deduct on its first tax return for the fiscal year ending October 31?
c. What amount of start-up costs can Delta Corporation deduct on its first tax return?