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Desi Corporation Incurs $5,000 in Travel,market Surveys,and Legal Expenses to Investigate

question 58

Essay

Desi Corporation incurs $5,000 in travel,market surveys,and legal expenses to investigate the feasibility of opening a new coffee house in one of the new suburban malls in town.Desi already owns a similar coffee house across town.
a.What is the proper tax treatment of these expenses if Desi decides not to open the new coffee house?
b.What is the proper tax treatment of these expenses if Desi decides to open the new coffee house?
c.Assume that Desi Corp is currently in the cleaning services business and incurs the noted expenses.because it is considering opening a coffee house.Reconsider your responses to parts a and b.


Definitions:

Social Policy Advocates

Individuals or groups that promote policies intended to improve human welfare and address issues of social justice.

Beneficence

The ethical principle that advocates for actions that promote the welfare and well-being of others, often considered in medical and research contexts.

Moral Imperative

A duty or obligation guided by ethical considerations and principles, compelling an individual or society to act in a certain manner.

Altruism

The practice of selfless concern for the well-being of others.

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