Question
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,
| 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. |
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Auditing Assurance Services and Ethics in Australia an Integrated Approach
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
9th edition
978-1442539365, 1442539364
