1. Elise, a cash basis taxpayer, contracts with a cleaning service every six months. The service requires payment up front for the six-month contract. In December of Year 1, Elise pays $600 for cleaning service from January through June of Year 2. How much can Elise deduct in Year 1? Pro-rate the contract by month if needed.

. Larry went from Cleveland to New York on business. His time was spent as follows:

Thursday Travel Frida y Business Saturday and Sunday Sightseeing Monday and Tuesday Business Wednesday Travel During the trip, Larry incurred and paid expenses of $180 per day for lodging from Thursday night through Tuesday night and $110 per day for meals. Round-trip airfare was $400. Larry is a selfemployed attorney who practices law in Cleveland. How much can Larry deduct for the New York trip? Hint: there are 7 business days and 6 nights of stay 3. Mark has a great idea for business and investigates his idea. He spends $2,000 for a market survey and $2,200 for a feasibility study. After the investigation, he proceeds to establish the business in Year 1. He also has start-up expenses of $1,500 for pre-opening advertising. The business starts to operate on July 1, Year 1. Can much investigation and start-up expense can he deduct in Year 1?