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makkiz [27]
3 years ago
15

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into

a city in the Northeast. She incurs $35,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $53,000. She proceeds with opening the restaurant, and it begins operations on September 1.
Computers and Technology
1 answer:
iragen [17]3 years ago
5 0

Answer: Explanation:

The amount that Nancy can deduct in the current year for investigating these two businesses.

Nancy could deduct the $35,000 for hotel investigation expenses.

Nancy can deduct $2,000 + $1133 = $3,133 of the restaurant expenses the first year and then the other $51,000 over a period of 180 months, that is $1133 per month.

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