Start-Up Costs

Kling Company was organized in late 2019 and began operations on January 2, 2020. 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 2019?

2.What amount should the company expense in 2020?