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John, a rental car dealer on Miami Beach, is considering opening a beauty salon in San Francisco. After spending $8,000 investigating such possibilities in San

John, a rental car dealer on Miami Beach, is considering opening a beauty salon in San Francisco. After spending $8,000 investigating such possibilities in San Francisco, John decides not to open the salon. As a consequence, the $8,000 is:

a. Capitalized and amortized over 189 months

b. Capitalized and deductible over the life of the business

c. Deduct $5,000 and amortize the balance over 180 months

d. Not deductible

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