Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were...

Recently, a group of university students decided to incorporate
for the purposes of selling a process to recycle the
waste product from manufacturing cheese. Some of the
initial costs involved were legal fees and office expenses
incurred in starting the business, state incorporation fees,
and stamp taxes. One student wishes to charge these
costs against revenue in the current period. Another
wishes to defer these costs and amortize them in the
future. Which student is correct?