Mark has a great idea for a new business, but he decides to spend both time and money to properly investigate before jumping into the business. He spends $3,000 for a market survey and $5,000 for a feasibility study. After this investigative work, Mark proceeds to establish the business. He also spends $45,000 for employee training. The business starts on July 1, Year 1.

(a) How much of the investigation expense and start-up cost can Mark deduct in Year 1?

(b) How much of the investigation expense and start-up cost can Mark deduct in Year 2?