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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.


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Indicates the presence of disease or pathological changes in an organism.

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A condition characterized by the need to urinate more often than usual.

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A fibrous membrane covering, supporting, and separating muscles; may also unite the skin with underlying tissue.

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A pliable yet non-stretchable strand of durable collagenous fibrous tissue that connects a muscle to a bone.

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