Mr. and Mrs. FB, a retired couple, decided to open a family restaurant. During March and April, they incurred the following expenses:
Prepaid rent on commercial real estate
($2,100 per month from April through December) ………………..$ 18,900
Prepaid rent on restaurant equipment
($990 per month from April through December) ………………… 8,910
Advertising of upcoming grand opening ………………………….. 900
Staff hiring and training ………………………………………….. 11,500
$ 40,210
Mr. and Mrs. FB served their first meal to a customer on May 1. Determine the tax treatment of the above expenses on their tax return.