The Plaza Company originated late in 2015 and began operations on

Question:

The Plaza Company originated late in 2015 and began operations on January 2, 2016. Plaza is engaged in conducting market research studies on behalf of manufacturers. Prior to the start of operations, the following costs were incurred:

Attorney’s fees in connection with
organization of Plaza$ 4,000
Improvements to leased offices prior to
occupancy7,000
Meetings of incorporators, state filing
fees, and other company expenses5,000
$16,000

What is the amount of expense recognized for 2016

Answer:

The amount of expense recognized for 2016 :-

Attorney’s fees in connection with
organization of Plaza $4,000
Meetings of incorporators, state filing
fees and other company expenses $5,000
$9,000

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