Calvin Company incurred the following costs related to the start-up of the business:

The company wishes to amortize these costs over the maximum period allowed under generally accepted accounting principles. Assuming that Calvin Company began operation on January 1, 2008, what amount of the start-up costs should be amortized in 2009?
A) $4,400
B) $2,200
C) $800
D) $0

Question

Calvin Company incurred the following costs related to the start-up of the business:

The company wishes to amortize these costs over the maximum period allowed under generally accepted accounting principles. Assuming that Calvin Company began operation on January 1, 2008, what amount of the start-up costs should be amortized in 2009?
A) $4,400 
B) $2,200 
C) $800 
D) $0

Quizplus · Accepted Answer

All $32,000 of costs were expensed in 2008.

Calvin Company Incurred the Following Costs Related to the Start-Up