Thermo Corporation was organized in 2013 and began operations at the beginning of 2014. The company is involved in energy development. The following costs were incurred prior to the start of operations.
Costs of meetings of incorporators to discuss
organizational activities.................$ 17,000
Attorney’s fees in connection with organization of the
company.........................26,000
Purchase of testing equipment ..............61,000
Costs of meetings with potential customers .............3,000
State filing fees to incorporate................1,000
$108,000

Instructions
(a) Compute the total amount of organization costs incurred by Thermo.
(b) Prepare the journal entry to record organization costs for 2014.