Direct costs incurred to sell stock such as underwriting costs should be accounted for as...

Direct costs incurred to sell stock such as underwriting costs should be accounted for as...



1. a reduction of additional paid-in capital.
2. an expense of the period in which the stock is issued.
3. an intangible asset.

a. 1
b. 2
c. 3
d. 1 or 3


Answer: 1


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