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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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