Identify which of the following statements is true.
A)Organizational expenditures incurred by a corporation do not include the cost of accounting services necessary to create the corporation.
B)Organizational expenditures incurred by a corporation do not include the cost of printing stock.
C)Unamortized organizational expenses cannot be deducted when the corporation is liquidated.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Organizational expenditures for a corporation include the cost of legal and administrative fees necessary to create the corporation, but do not include the cost of printing stock. Unamortized organizational expenses can be deducted when the corporation is liquidated. Therefore, statement B is the only true statement among the options given.

Identify Which of the Following Statements Is True