Ethan owns and operates a several dry cleaning stores located in Seattle. He travels to Portland to discuss the acquisition of a pool maintenance business. Furthermore, he incurs legal and accounting costs associated with the potential acquisition. After incurring total investigation costs of $54,500, he acquires the pool maintenance business on November 1, 2020. How much of his investigation expenses can Ethan deduct in 2020? $600 $4,500 $500 $1,100 D Question 2 1 pts In June of 2020, Barbara was diagnosed as having a terminal illness. After paying $4,200 in premiums for her term life insurance, Barbara decided to sell the policy to Blue Horizons Inc., a company that is authorized to purchase such policies. Blue Horizons, Inc. paid Barbara $60,500. When Barbara died 4 months later, Blue Horizons, Inc., collected the face amount of the policy, $85,300. During the four months it owned the policy, Blue Horizons, Inc., paid additional premiums of $1,500. How much gain should Blue Horizons, Inc. report for 2020? $85,300 $23,300 $60,500 $62,000