Bob, owner of the Blue Bird Bakery in Ocean City, NJ, has had a wildly successful boardwalk business selling all types of desserts over the last 10 years. Looking to build on this boardwalk success, he suggests to his son, Sam, that he open a surf shop. Sam decides its a great idea and incurs the following start-up expenditures while opening the Super Surf Shop:

Employee training $15,000

Location Investigation and travel $24,000

Legal Fees to set up entity $12,500

If Sam decides that he is going to move forward with the new business on May 1^st with a tax year ending in December, determine the deductibility, amount, and timing of the above expenses.