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

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Definitions:

Entitlements

Rights or privileges granted to individuals or groups, often by law, allowing access to specific benefits or services.

Organizational Policy

A set of guidelines and rules established by an organization to govern its operations and decision-making processes.

Legal Aid

Assistance provided to individuals, usually free of charge or at a reduced rate, to help them pursue legal matters.

Free Legal Services

Legal advice, representation, or other legal work provided without charge to individuals who cannot afford to pay for such services.