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During November and December of last year, Stephen's, Inc., incurred the following expenses in investigating the feasibility of opening a new restaurant in town: ::
During November and December of last year, Stephen's, Inc., incurred the following expenses in investigating the feasibility of opening a new restaurant in town: :: (Click the icon to view the expenses) Expenses for a market survey $ 4,400 Expenses to identify potential suppliers of goods $ 6,200 Expenses to identify a proper location $ 1,600 Print Done Explain the proper treatment of these expenses under the following scenarios: a. Stephen's, Inc., already owns another restaurant in town and wants to expand. Stephen's, Inc. opens the new restaurant in May of the current year. b. Assume that Stephen's, Inc. is in the book selling business, and it wants to move into the restaurant business. It opens the restaurant in May of the current year. c. Same as Part b except Stephen's decides against opening a restaurant after the investigation
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