Clark Exploration Corporation Was Organized and Began Operations on October

question 1

Multiple Choice

Clark Exploration Corporation was organized and began operations on October 1,2016.It incurs $41,000 in legal fees to obtain the corporate charter.The corporation elects to expense its organizational costs over the shortest allowable period.What amount will Clark report for organizational expenses for 2016?

• A)$2,050
• B)$4,100
• C)$5,000
• D)$5,600
• E)$41,000

---

Definitions:

Tracheostomy Tube

A tube inserted through a surgical opening in the neck into the trachea to facilitate breathing.

Humidified Oxygen

Oxygen that is moistened to prevent dryness in the nasal passages and throat of patients requiring supplemental oxygen.

Arterial Blood Gas

A diagnostic blood test that measures the levels of oxygen, carbon dioxide, and the pH in arterial blood to assess the effectiveness of lung function.

Nasal Cannula

A device used to deliver supplemental oxygen or airflow to a patient in need of respiratory help through the nostrils.