Shree is considering opening a travel agency. She spends $47,000 investigating the profitability of the business and
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Shree is considering opening a travel agency. She spends $47,000 investigating the profitability of the business and potential locations and $5,000 for legal and other fees incident to the organization of the business. Although the costs are high, Shree believes that she will recover them quickly. What is the proper treatment of the costs? Will the treatment be different if she organizes the business as a sole proprietorship or a corporation?
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If Shree opens the travel agency the 52000 in costs incurred before the business begins operations a...View the full answer
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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