The costs of bringing a corporation into existence,including legal fees,promoters' fees,and amounts paid to the government are called
A)Minimum legal capital
B)Contributed capital
C)Organization costs
D)Financial leverage
E)Prepaid expenses

Question

Quizplus · Accepted Answer

These costs are commonly referred to as organization costs, which are incurred by a corporation during its incorporation process. They include fees paid to lawyers, accountants, promoters, and government agencies for filing articles of incorporation, obtaining permits and licenses, and other legal formalities. These costs are amortized over a period of time, typically no more than 60 months, and are reported as a separate intangible asset on the balance sheet. Therefore, choice C is the best answer. Choices A, B, D, and E are not relevant in this context.

The Costs of Bringing a Corporation into Existence,including Legal Fees,promoters