Plaza Company originated late in 2018 and began operations on January 2, 2019. 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 company expenses ..............5,000
..........................................................................................................................................$16,000
What is the amount of expense recognized for 2019?
a. $16,000
b. $9,000
c. $7,000
d. $4,000