Question

If startup expenses total $53,000 in 2014, $51,000 is amortized over 180 months.

a) True
b) False

Answer 1

The question examines the practice of amortizing startup expenses, which is common in business, with the specific example of $51,000 being spread over 180 months.

Step-by-step explanation:

The question relates to whether startup expenses totaling $53,000 in 2014, with $51,000 being amortized over 180 months, is true or false. In business, startup expenses are often amortized to spread the costs over a certain period. This is done to match expenses with the income they help to generate. The amortization of startup expenses is a common practice for new businesses.