Research Problem 2. A new client, John Dobson, recently formed Johns Premium Steak- house, Inc., to operate a new restaurant. The restaurant will be a first-time business ven- ture for John, who recently retired after 30 years of military service. John transferred cash to the corporation in exchange for 100% of its stock, and the corporation is considering leasing a building and restaurant equipment. John has asked you for guidance on the tax treatment of various expenses (e.g., licensing, training, advertising) he expects the corpo- ration to incur during the restaurants pre-opening period. Research the tax treatment of startup expenditures, including the point at which a business begins for purposes of determining what expenses are included. Prepare a memo for the client files describing the results of your research. Partial list of research aids: 195. Reg. 1.1951