In March of the Current Year, Marcus Began Investigating the Possibility

question 1184

Multiple Choice

In March of the current year, Marcus began investigating the possibility of opening a specialty clothing store. From March through June, he spent $2,300 on a market survey, $2,700 in consulting fees to find the best location and $3,600 in professional fees setting up an accounting and inventory system. Although he had never run his own business before, on August 1 he opened his doors for business. What is the maximum amount of deduction for the current year attributable to these expenditures?

• A) $5,100
• B) $8,600
• C) $0
• D) $5,000

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Definitions:

Reframing

Changing the perspective on a situation to see it in a new, often more positive or beneficial light, a technique often used in therapy and conflict resolution.

Cocaine Addiction

A chronic disorder characterized by the compulsive use of cocaine, leading to severe social, psychological, and health problems.

Glaciers

Massive bodies of ice that develop on land through the compaction and recrystallization of snow, gradually shifting position over periods.

Groundwater

Water that is held underground in the soil or in pores and crevices in rock.