Morty Enterprises, is a new start-up company. Morty Enterprises has been preparing to begin operations for the past six months and is almost ready to start production. It has incurred significant costs but no revenue has yet to be earned. Organization costs such as legal fees and advertising have been capitalized as start-up costs. Morty Enterprises has expensed all payroll expenses, rent, and other similar costs as incurredthis has resulted in a significant loss being reported on the first years financial statements.

Is Mortys accounting treatment in accordance with GAAP? Also, what is the exact accounting standards codification (ASC) in this format for example: (FASB ASC 740-10-50-1)