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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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