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Hennetta, the owner of a very successful hotel chain in the Southeost, is exploting the possibility of expanding the chain into a cty in the

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Hennetta, the owner of a very successful hotel chain in the Southeost, is exploting the possibility of expanding the chain into a cty in the Northeast. She incurs 535,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the oty, she decides not to expand. During the year, she also investipates opening a cestaurant that will be part of a national restaurant chain. Her expenses for this are $53,000. She proceeds with opening the restaurant, and it begins operations on September 1. Determine the amount Henrietto can deduct in the current year for investigating these two businesses. In your computations, round the per-month to two decimal places and use rounded amount in subsequent computations. If required, round your final answers to the nearest dollar. a. The deductible amount of investigation expenses related to expansion of her hotel chain into another city: 1 x b. The deductible amount of investigation expenses related to opening a restaurant: 1 x feedback TOnaky Wor Investigation expenses are expenses paid or incurted to determine the feasibility of entering a new business or expanding an existing business. They include such costs as travel, eng neering and architectural surveys, marketing reports, and various legal and accounting services: How such expenses are treated for tax purposes depends on a number of variables, including the following: (1) The current business, if any, of the taxpayer, (2) The nature of the business being investigated, (3) The extent to which the investigation has proceeded and (4) Whether the acquisition actually takes place

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