In the Syndication of a Partnership,brokerage and Registration Fees,printing Fees,and

question 49

Multiple Choice

In the syndication of a partnership,brokerage and registration fees,printing fees,and legal fees of the underwriter total $50,000.With respect to these fees,the partnership must

• A)capitalize the fees,which are not amortizable.
• B)deduct $5,000 of the expenses in the accounting period incurred and permanently capitalize the remainder.
• C)capitalize and amortize the fees over a period of not less than 60 months.
• D)deduct $5,000 of the expenses in the accounting period incurred and amortize the remaining amount over 180 months.

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Definitions:

Mood-stabilizing Drug

Medications used to treat mood disorders that help regulate and stabilize emotional states, preventing extreme shifts in mood.

Lithium

A chemical element used as a medication to treat mood disorders such as bipolar disorder by stabilizing mood swings.

Bipolar Disorder

A psychological disorder marked by severe fluctuations in mood, ranging from manic or hypomanic episodes to depressive lows.

Psychosurgery

Surgical procedures that modify brain tissue in order to alleviate psychological disorders or behavioral problems.