Expensing start-up costs, Recently, a group of university

Expensing start-up costs

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Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to charge these costs against revenue in the current period. Another student wishes to defer these costs and amortize them in the future. Which student is correct and why?

Reference no: EM1363550

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Expensing start-up costs : Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese.

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