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:

Self-interest

The consideration of one's own advantage or well-being before that of others.

Primed

The cognitive process by which exposure to a stimulus influences response to a later stimulus, making it more likely to occur.

Serial Position Effect

A memory effect where items at the beginning and end of a list are more easily recalled than those in the middle.

Grocery Items

Products sold in a grocery store, including food, beverages, household goods, and other consumables.