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:

Compliance Reports

Documents that outline whether a company or individual is adhering to regulations and standards.

Government Agencies

Organizations at the federal, state, or local level that administer specific functions and services on behalf of the government.

Parent Companies

Corporations that own a controlling interest in one or more subsidiary businesses.

Problem-Factoring Process

A methodical approach to solving problems by breaking them down into smaller, more manageable components.