Brick Oven Corporation was organized early in 2012. The following expenditures were made during the first few months of the year:
Attorneys' fees to organize the corporation ................................$ 8,000
Purchase of a patent ............................................................30,000
Legal and other fees for transfer of the patent ..............................2,000
Preopening employee salaries .................................................70,000
Total ...........................................................................$110,000
Required:
Record the $110,000 in cash expenditures.