Hype Company, a developmental stage enterprise, incurred the following costs during its first year of operations: Legal fees for incorporation and other related matters P1,000,000 Underwriters' fees for initial stock offering 500,000 Exploration costs and purchase of mineral rights 6,000,000 Hype had no revenue during its first year of operations. What amount may Hype capitalize as organization costs?

Hype Company, a developmental stage enterprise, incurred the following costs during its first year of operations: Legal fees for incorporation and other related matters P1,000,000 Underwriters' fees for initial stock offering 500,000 Exploration costs and purchase of mineral rights 6,000,000 Hype had no revenue during its first year of operations. What amount may Hype capitalize as organization costs?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 25P

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