Edward's, Inc., incurred the following expenses in investigating the feasibility of opening a new restaurant in town: Expenses to do a market survey $3,400 Expenses to identify potential suppliers of goods $8,100 Expenses to identify a proper location $1,600

1. Edwards, Inc., already owns another restaurant in town and is wanting to expand. Edward's, Inc. opens the new restaurant in April of the current year. Under this scenario Edwards may deduct: A. $0 B. $13,100 C. $5,000 D. $5,405

2. Same as #1, except Edwards decides against opening a restaurant after getting back the results of the investigation. A. $0 B. $13,100 C. $5,000 D. $5,405

3. Assume that Edward's, Inc. is in the book selling business and feels that its bookstore business is not making a high enough return and it wants to move into the restaurant business. It opens the restaurant in April of the current year. Under this scenario Edwards may deduct: A. $0 B. $13,100 C. $5,000 D. $5,405

4. Same as #3 except Edward's decides against opening a restaurant after getting back the results of the investigation. A. $0 B. $13,100 C. $5,000 D. $5,405

5. Maya is a self-employed event planner. While driving to work at a major event that she planned, Maya is pulled over for speeding by the local police. She paid a fine of $300. How much Maya can deduct as a business expense? A. $0, the expense is non-deductible B. $150 for AGI C. $300 for AGI D. $300 from AGI