If startup expenses total $53,000, $51,000 of those costs are amortized over 180 months.

Name: If startup expenses total $53,000, $51,000 of those costs are amortized over 180 months.
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Quizplus · Accepted Answer

Amortization means spreading the cost over a period of time. In this case, $51,000 is being spread over 180 months (or 15 years) which is a common practice for assets that have a longer lifespan. The remaining $2,000 may not be eligible for amortization and could be expensed immediately.

If Startup Expenses Total $53,000, $51,000 of Those Costs Are