Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida, and wants to expand to other states. During 2018, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations, but not the outlets in Georgia. As to these expenses, Iris should: Capitalize $14,000 and not deduct $9,000.
		None of these is correct.
		Expense $23,000 for 2018.
		Expense $9,000 for 2018 and capitalize $14,000.
		Capitalize $23,000.