The Nandina Corporation Was Formed and Began Operations on July

question 73

Multiple Choice

The Nandina Corporation was formed and began operations on July 1, 2018, and incurred the following expenses during the year: $\begin{array}{llcc} \text { State fees for incorporation } &\$800 \\ \text { Legal and accounting fees incident to organization} &1,700\\ \text {Legal fees for the issuance of stock } &600\\ \text { Temporaty directors' fees } &1,100\\\end{array}$
If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2018?

• A)$20
• B)$120
• C)$240
• D)$3,600
• E)None of the above

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Definitions:

Direct Costs

Costs directly associated with the manufacture of particular products or services, including labor and raw materials.

Apportioned Costs

Expenses that are divided and allocated among different departments, projects, or processes within an organization based on agreed-upon criteria.

Human Resource Plans

Strategic documents outlining how an organization intends to manage its workforce to meet its business goals, including staffing, development, and compensation strategies.

Recruiters

Individuals or agencies involved in the process of finding and hiring candidates for job vacancies.