Toni Owns a Gourmet Dog Treat Shop Downtown

question 20

Multiple Choice

Toni owns a gourmet dog treat shop downtown.She spends $2,800 investigating opening another dog treat shop in Northtown and an additional $3,100 investigating a new location in Southtown.Toni does open the Northtown shop,but does not open the Southtown shop.

• A)Toni must capitalize and amortize the Northtown investigation costs,but can immediately deduct the Southtown investigation costs.
• B)Toni must capitalize and amortize the Northtown investigation costs,but the Southtown investigation costs are not deductible at all.
• C)Both the Northtown and the Southtown investigation costs must be capitalized and amortized.
• D)Both the Northtown and the Southtown investigation costs are currently deductible.

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Definitions:

Family and Medical Leave Act

U.S. federal law that provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for qualified medical and family reasons.

Eligible Employee

A worker who meets certain criteria to qualify for benefits or rights under employment laws or company policies.

COBRA

The Consolidated Omnibus Budget Reconciliation Act, a U.S. law that provides individuals and their families the option to continue health insurance coverage after a job loss or other qualifying event.

Occupational Safety and Health Act

A United States law established in 1970 to ensure workplace safety and health standards.