Tommy, an Automobile Mechanic Employed by an Auto Dealership, Is

question 153

Multiple Choice

Tommy, an automobile mechanic employed by an auto dealership, is considering opening a fast food franchise. If Tommy decides not to acquire the fast food franchise, any investigation expenses are:

• A) A deduction for AGI.
• B) A deduction from AGI, subject to the 2 percent floor.
• C) A deduction from AGI, not subject to the 2 percent floor.
• D) Deductible up to $5,000 in the current year with the balance being amortized over a 180-month period.
• E) Not deductible.

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Definitions:

Prospects

Potential customers or clients, or the likelihood of future success in a particular area.

Administrative Agencies

Governmental bodies responsible for the oversight and administration of specific functions, such as regulation or enforcement of laws and public policies.

Criminal Laws

Laws that define behaviors prohibited by the state because they threaten, harm, or otherwise endanger the safety and welfare of the public.

Enforce

To enforce compliance or adherence to a law, rule, or obligation.