Effect of Start-up and Organization Costs SE2. At the beginning of 2014, Salinas Company incurred the following start-up and organization costs: (1) attorneys' fees with a market value of $10,000, paid with 6,000 shares of $1 par value common stock, and (2) incorporation fees of $6,000 cash. Cal. culate total start-up and organization costs. What will be the effect of these costs on the income statement and balance sheet