Legal costs incurred to get a corporation up and running should be accounted for by debiting

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Quizplus · Accepted Answer

Legal costs incurred to get a corporation up and running should be accounted for by debiting organization costs. This is because organization costs include expenses that are incurred during the formation of a corporation, such as legal fees, filing fees, and incorporation fees. These costs are not considered to be a part of the company's ongoing operating expenses and are instead capitalized as an asset on the balance sheet and amortized over time.

Legal Costs Incurred to Get a Corporation Up and Running