The Costs of Organizing a Corporation Include Legal Fees, Fees

question 138

Multiple Choice

The costs of organizing a corporation include legal fees, fees paid to the state of incorporation, fees paid to promoters, and the costs of meetings for organizing the promoters. These costs are said to benefit the corporation for the entity's entire life. These costs should be

• A) capitalized and never amortized.
• B) capitalized and amortized over 40 years.
• C) capitalized and amortized over 5 years.
• D) expensed as incurred.

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Definitions:

Dualistic Thinking

The tendency to categorize aspects of life into binaries or opposites, often viewing them as completely separate and distinct.

Relativistic Thinking

is the ability to understand that knowledge and truth may vary across different contexts and perspectives, recognizing multiple viewpoints.

Perry's Theory

A cognitive development theory proposed by William G. Perry that outlines how students evolve through different stages of intellectual and ethical development in college.

Interpersonal Therapy

A form of therapy focused on improving interpersonal relationships and communication patterns to alleviate mental health issues.