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3. Lawyer's fees incurred during a reorganization are accounted for as: a. additional paid-in capital. b. a prepaid asset until the entity emerges from reorganization.
3. Lawyer's fees incurred during a reorganization are accounted for as:
a. additional paid-in capital.
b. a prepaid asset until the entity emerges from reorganization.
c. retained earnings.
d. an intangible asset, Reorganization Cost, which would normally be amortized over a five-year period.
e. an expense.
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