Kling Company was organized in late 2019 and began operations on January 2, 2020. 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:
1. What amount should the company expense in 2019? In 2020?
2. Next Level What is the justification of the accounting treatment of these costs?