These are things I've read and heard, but you can never be 100% sure that the sources are right., if the source isn't Michael himself. An example: Jermaine said MJ's favourite colors were gold and red, Taraborrelli said in his book that it was yellow, so who are you going to believe...
GAAP, however, generally requires that these costs be expensed when incurred because it is difficult determine their future benefits and relation to future revenues (the matching principle). Unless there are large amounts of organizational expenses, they are usually expensed for GAAP and financial reporting purposes.
To qualify as an organizational cost, it must be: 1  For the creation of the corporation, 2  Chargeable to a capital account (see chapter 1), 3  Amortized over the life of the corporation if the corporation had a fixed life, and.  Incurred before the end of the first tax year in which the corporation is in business.