When existing corporations issue stock, costs such as legal fees and underwriter's fees are usually accounted for as

A) organization expenses
B) reduction of Additional Paid-in Capital
C) organizational costs
D) reduction of Retained Earnings

Organization Expenses

Costs incurred in the formation of a corporation, partnership, or other business entity, typically including legal and registration fees.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, beyond the par value of the shares.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.