[needhelpnow]

Alt Partnership, a cash basis calendar year entity, began business on October 1, 20X4. Alt incurred and paid the following in 20X4:

-Legal fees to prepare the partnership agreement $12,000

-Accounting fees to prepare the representations

in offering materials $15,000

Alt elected to amortize costs. What was the maximum amount that Alt could deduct on the 20X4 partnership return?

a$0

b$200

c3,000

d$6,750

Answer is B

But what about the $5000 expense in the beginning? Why doesnt Alt get that deduction. Because I am thinking $12,000-5000= $7000. Therefore, $5000+[($7000/180months) x 3 months]

Please explain. Thank you!