Taxation Please

Legal Fees include the following item: $125,000 with respect to costs incurred in registering the company, drafting its documents of incorporation and other activities required in the formation of the company Required: Briefly but fully explain, whether or not an adjustment to net profit for tax purposes is required, given the facts above. Where an adjustment is required, the effect on the net profit must be stated - that is, whether the net profit increased, decreased or would remain the same