Other Objective Questions Designate Whether the Following Expenses Are Fully Deductible (F), Partially

question 101

Multiple Choice

Other Objective Questions
Designate whether the following expenses are fully deductible (F) , partially deductible (P) , or nondeductible (N) in the year paid.
-Matthew, a car dealer in Atlanta, wants to open a restaurant in Miami. He spends $8,000 investigating the location and feasibility of opening the restaurant in 2018, Matthew opens the restaurant in Miami in November and spends an additional $7,000 in start-up costs. In 2018 Matthew can:

• A) Deduct the entire $15,000
• B) Deduct $8,000 with the remaining $7,000 amortized over 15 years
• C) Deduct $5,000 with the remaining $10,000 amortized over 15 years
• D) Only amortize the entire $15,000 over 15 years

---

Definitions:

Competitive Industry

An industry characterized by a marketplace with many sellers and buyers, ensuring no single participant has significant market power.

Resources Move

The economic principle that factors of production, such as labor and capital, are allocated to various uses based on market dynamics and incentives.

Distribution Of Output

Refers to how the total output of goods or services is spread across various participants in an economy, affecting income and wealth distribution.

Market Economy

An economic system where decisions regarding investment, production, and distribution are guided by the market's supply and demand forces rather than government intervention.