Reference no: EM132827902

Fast Eddies Cycle Enterprises (FECE) is a calendar year taxpayer who began business on June 1, 2020. FECE incurs and pays the following expenses in 2020 related to forming the business:

$8,000 of organization meeting expenses
$3,000 of legal expenses to form the corporation
$1,920 of incorporation fees
$1,000 to print stock certificates
$1,000 to sell stock

Problem 1: What is the FECE's organization expense deduction for 2020?

Group of answer choices

Option 1: $10,616

Option 2: $12,920

Option 3: $1,290

Option 4: $5,308