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Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New

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Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 2020. Stanford incurred the following expenses: $36,250 Total investigation costs related to the restaurant Total investigation costs related to the bakery 52,300 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. What is the maximum amount Stanford can deduct in 2020 for investigation expenses? 4,537 X Problem 5-24 (Algorithmic) (LO. 3) Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $63,500 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $53,000. She proceeds with opening the restaurant, and it begins operations on May 1. Determine the amount Henrietta can deduct in the current year for investigating these two businesses. In your computations, round the per-month to two decimal places and use rounded amount in subsequent computations. It required, round your final answers to the nearest dollar. a. The deductible amount of investigation expenses related to expansion of her hotel chain into another city: 63,500 b. The deductible amount of investigation expenses related to opening a restaurant: 1 X

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