Question

The Nandina Corporation was formed and began operations on July 1, 2018, and incurred the following expenses during the year: State fees for incorporation $800 Legal and accounting fees incident to organization 1,500 Legal fees for the issuance of stock 600 Temporary directors’ fees 1,000 If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2018?

Answer 1

Answer:

$110.00

Explanation:

Nandina Corporation

The amount of amortization expenses for 2018

State fees for incorporation $800

Legal and accounting fees incident to organization 1,500

Temporary directors’ fees 1,000

Total $3,300

Hence:

$3,300/180 months x 6 months

= $110.00

Therefore the amount of its amortization expense for 2018 will be $110.00