During November and December of last year, Timothy's, Inc., incurred the following expenses in investigating the feasibility of opening a new restaurant in town: View the expenses. Read the requirement. Scenario a. Timothy's, Inc., already owns another restaurant in town and wants to expand. Timothy's, Inc. opens the new restaurant in June of the current year. Under this scenario Timothy may deduct Expenses Expenses for a market survey $ 3,500 Expenses to identify potential suppliers of goods $ Expenses to identify a proper location 3,700 $ 1,400 Requirement Explain the proper treatment of these expenses under the following scenarios: a. Timothy's, Inc., already owns another restaurant in town and wants to expand. Timothy's, Inc. opens the new restaurant in June of the current year. b. Assume that Timothy's, Inc. is in the book selling business, and it wants to move into the restaurant business. It opens the restaurant in June of the current year. c. Same as Part b except Timothy's decides against opening a restaurant after the investigation.