Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of

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Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $35,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will 1x part of a national restaurant chain. Her expenses for this are $53,000. The restaurant begins operations on September 1. Determine the amount that Henrietta can deduct in the current year for investigating these two businesses.

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Related Book For  answer-question

South-Western Federal Taxation 2019 Comprehensive

ISBN: 9781337703017

42th Edition

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

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