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:

Simplify

The process of reducing an expression to its simplest form, making it easier to understand or solve.

\(8^x\cdot 8^{x-1}\)

An expression that can be simplified to \(8^{2x-1}\) using the properties of exponents.

\(10,000(1.07)^{4t}\)

An exponential growth equation, where \(10,000\) is the initial quantity and \(1.07\) is the growth factor applied every period \(t\), scaled by a factor of 4.

\(10,000(1.09)^{3t}\)

An exponential function, often used in finance to calculate compounded interest or investment growth over time.