Henry Owns a Hardware Store in Indianapolis

question 124

Multiple Choice

Henry owns a hardware store in Indianapolis. He has decided to expand his business interests and is considering opening a golf store in a neighboring town. He has incurred $12,000 of expenses investigating whether to open the new golf store. In July of the current year he finds the perfect location and opens the golf store on October 1. What amount of the investigation expenses can he deduct in the current year?

• A)$- 0 -
• B)$600
• C)$5,117
• D)$5,540
• E)$12,000

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Definitions:

Confidence

The feeling or belief that one can rely on something or someone; self-assurance.

McGregor's Theory

Refers to Douglas McGregor's Theory X and Theory Y, which describe different assumptions managers might hold about employees' motivation and work ethic.

Ambition

The strong desire to achieve something, typically requiring determination and hard work.

Theory X

A management theory which assumes that employees are naturally unmotivated and need strict supervision and control to be productive.