A is corrent. Organizational costs include the attorney’s fees and meetings of incorporators, state filing fees, and other organizational expenses. Under generally accepted accounting principles, per ASC Subtopic 720-15, they should be expensed immediately. Leasehold improvements are amortizable assets but do not qualify as organization costs.
| Attorney’s fees | $4,000 |
| Meetings, etc. | 5,000 |
| | $9,000 |
B is incorrect. Organizational costs include the attorney’s fees and meetings of incorporators, state filing fees, and other organizational expenses. Under generally accepted accounting principles, per ASC Subtopic 720-15, they should be expensed immediately. Leasehold improvements are amortizable assets but do not qualify as organization costs.
| Attorney’s fees | $4,000 |
| Meetings, etc. | 5,000 |
| | $9,000 |
C is incorrect. Organizational costs include the attorney’s fees and meetings of incorporators, state filing fees, and other organizational expenses. Under generally accepted accounting principles, per ASC Subtopic 720-15, they should be expensed immediately. Leasehold improvements are amortizable assets but do not qualify as organization costs.
| Attorney’s fees | $4,000 |
| Meetings, etc. | 5,000 |
| | $9,000 |
D is incorrect. Organizational costs include the attorney’s fees and meetings of incorporators, state filing fees, and other organizational expenses. Under generally accepted accounting principles, per ASC Subtopic 720-15, they should be expensed immediately. Leasehold improvements are amortizable assets but do not qualify as organization costs.
| Attorney’s fees | $4,000 |
| Meetings, etc. | 5,000 |
| | $9,000 |
