KamCo, Inc., manufactures tents, boots, waterproof hunting suits and assorted other camping equipment and accessories. KamCo has always sold its products to wholesale distributors who in turn sell the merchandise to various sporting goods stores and outdoor outfitters. In March of the current year, KamCo began investigating the possibility of opening a specialty clothing and supply store through which it would sell selected products at retail. From March through June, KamCo spent $4,300 on a market research survey, $21,700 in consulting fees to find the best location and $25,200 in legal and accounting fees associated with this new line of business. Although KamCo had never run a retail operation before, on August 1, it opened his doors for business. What is the maximum amount KamCo can deduct in the current year attributable to these expenditures?

A.

$51,200

B.

$5,117

C.

$5,000

D.

$26,000

E.

$0