During January and February of the current year, Big Bang LLP incurs \($13,000\) in travel, feasibility studies, and legal expenses to investigate the feasibility of opening a new entertainment gallery in one of the new suburban malls in town. Big Bang already owns two other entertainment galleries in other malls in the area.

a. What is the proper tax treatment of these expenses if Big Bang decides not to open the new gallery?

b. Assume instead of an entertainment gallery, Big Bang incurred expenses to investigate opening an online retail store devoted to rental and sale of video games. What is the proper tax treatment of these expenses if Big Bang decides to open the new store on May 1 of the current year and makes the appropriate election under Sec. 195?