Costs of hiring new employees Attorney's fees in connection with the organization of the company Improvements to leased offices prior to occupancy (10-year lease) Costs of pre-opening advertising 3,000 12,000 6,000 5,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 7RE
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Kling Company was organized in late 2019 and began operations On January 2, 2020. Prior to  the start of operations, it incurred the following costs:

1. what amount should the compmy expense in 2019? In 2020?
2. Next Level What is the justification of the accounting treatment of these costs?

Costs of hiring new employees
Attorney's fees in connection with the organization of the company
Improvements to leased offices prior to occupancy (10-year lease)
Costs of pre-opening advertising
3,000
12,000
6,000
5,000
Transcribed Image Text:Costs of hiring new employees Attorney's fees in connection with the organization of the company Improvements to leased offices prior to occupancy (10-year lease) Costs of pre-opening advertising 3,000 12,000 6,000 5,000
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