Start-Up Costs

Kling Company was organized in late 2016 and began operations on January 2, 2017. Prior to the start of operations, it incurred the following costs:

Costs of hiring new employees	$3,000
Attorney's fees in connection with the organization of the company	12,000
Improvements to leased offices prior to occupancy (10-year lease )	6,000
Costs of pre-opening advertising	5,000

Required:

1. What amount should the company expense in 2016? $

What amount should the company expense in 2017? $

2. Kling Company was organized in late 2016 and began operations on January 2, 2017. Prior to the start of operations, it incurred costs to hire new employees, attorney fees in connection with the organization of the company, improvements to leased offices prior to occupancy (10-year lease), and costs related to pre-opening advertising. Start-up costs are: