Detailed Answer
Answer (D) is correct.
Acquisition-related costs, such as finder’s fees, professional and
consulting fees, and general administrative costs, are expensed as
incurred. But direct issue costs of equity (underwriting, legal, accounting,
tax, registration, etc.) are debited to additional paid-in capital.
Accordingly, the amount expensed is $360,000 ($240,000 + $120,000).