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12. V runs a chicken restaurant in Cleveland. In early 2020, he starts to consider expanding to either San Diego or San Francisco, or both.
12. V runs a chicken restaurant in Cleveland. In early 2020, he starts to consider expanding to either San Diego or San Francisco, or both. He incurs $15,000 in expenses exploring the San Diego choice and $14,000 exploring the San Francisco one. He greatly enjoyed visiting these cities by partaking in tourist behaviors at night while there, having never been to either of those cities before. A) How much can V deduct in 2020 if he chooses not to expand in either city? B) How much can V deduct in 2020 if he chooses the San Francisco expansion only? C) How much can V deduct in 2020 if he rejects both these options and instead spends $52,000 investigating and starting up a used clothing store in Cleveland that opened September 1, 2020? 12. V runs a chicken restaurant in Cleveland. In early 2020, he starts to consider expanding to either San Diego or San Francisco, or both. He incurs $15,000 in expenses exploring the San Diego choice and $14,000 exploring the San Francisco one. He greatly enjoyed visiting these cities by partaking in tourist behaviors at night while there, having never been to either of those cities before. A) How much can V deduct in 2020 if he chooses not to expand in either city? B) How much can V deduct in 2020 if he chooses the San Francisco expansion only? C) How much can V deduct in 2020 if he rejects both these options and instead spends $52,000 investigating and starting up a used clothing store in Cleveland that opened September 1, 2020
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