The Plaza Company originated late in 2006 and began operations on January 2, 2007. Plaza is engaged in conducting market research studies on behalf of manufacturers. Prior to the start of operations, the following costs were incurred:
|
Attorney’s fees in connection with organization of Plaza |
$4,000 |
|
Improvements to leased offices prior to occupancy |
7,000 |
|
Meetings of incorporators, state filing fees and other organization expenses |
5,000 |
|
$16,000 |
What is the amount of expense recognized for 2007?
a. $16,000
b. $9,000
c. $7,000
d. $4,000