B is corrent. The requirement is to determine which costs are amortizable organizational expenditures. Organizational expenditures include fees for accounting and legal services incident to incorporation (e.g., fees for drafting corporate charter, bylaws, terms of stock certificates), expenses of organizational meetings and of temporary directors meetings, and fees paid to the state of incorporation. However, the costs incurred in issuing and selling stock (e.g., professional fees to issue stock, printing costs, underwriting commissions) do not qualify as organizational expenditures and are not tax-deductible.
A is incorrect. The costs of issuing stock are not deductible.
A is incorrect. The costs of issuing stock are not deductible.
D is incorrect. The costs of issuing stock are not deductible.
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