how to amortize incorporation costs?
Incorporation costs are intangible assets (also qualifies as eligible capital expenditure) and depreciate over its useful life. Which amortization method should be used to calculate the amount that would be entered into "Accumulated Amortization-Intangibles" account? At year-end, this amount will be added back to the income and ECE/CCA will be deducted. Then I go back and post adjusting journal entries to reflect the balance of the accumulated amortization-intangibles?
Or do we used the cumulative eligible capital right from the start to calculated the amortization of the incorporation costs and then post that amount to "Accumulated Amortization-Intangibles" account?
Or do we used the cumulative eligible capital right from the start to calculated the amortization of the incorporation costs and then post that amount to "Accumulated Amortization-Intangibles" account?