Kling Company was organized in late 2007 and began operations on January 2, 2008. Prior to the

Question:

Kling Company was organized in late 2007 and began operations on January 2, 2008. Prior to the start of operations, it incurred the following costs:
Costs of hiring new employees ............... $ 3,000
Attorney’s fees in connection with the organization of the company . 12,000
Improvements to leased offices prior to occupancy (10-year lease) .. 6,000
Costs of pre-opening advertising ................ 5,000

Required
What amount should the company expense in 2007? In 2008?