Which statement regarding organization and start$-$up costs is correct?

Start$-$up costs are defined as expenditures that are $(1)$ incident to the creation of the corporation or partnership, $(2)$ chargeable to a capital account, and $(3)$ of a character which, if expended to create an entity with a limited life, would be amortizable over that life. Organization costs include both the upfront costs of investigating the creation or purchase of a business and the routine expenses incurred during the pre$-$operating phase of a business. The capitalization requirement for start$-$up expenditures also applies to the expansion costs of an existing business. Interest expense, taxes, and research and experimental costs are not start$-$up expenditures and may be deducted even if incurred during the pre$-$operating phase of a business venture.