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During November and December of last investigating the feasibility of opening a new ta Tommy's, Inc., incurred the folowing expense taurant in town: Expenses to

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During November and December of last investigating the feasibility of opening a new ta Tommy's, Inc., incurred the folowing expense taurant in town: Expenses to do a market survey$3,800 Expenses to identify potential suppliers of goods $2,000 Expenses to identify a proper location $1,000 Explain the proper treatment of these expenses under the following scenarios: a. Tommy's, Inc., already owns another res taurant in town and is wanting to expand. Tommy's, Inc. opens the new restaurant in February of the current year. b. Assume that Tommy's, Inc. is in the book sel ing business and feels that its bookstore busi ness is not making a high enough return and it wants to move into the restaurant business It opens the restaurant in February of the caur rent year c. Same as Part b except Tommy's decides again opening a restaurant after the investigation

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