Kim owns and operates a restaurant on the north side of Indianapolis. She is considering opening a day care center on the south side of town and incurs $10,400 of investigation expenses. In July of the current year, Kim opens the day care center. How much of the investigation expenses can Kim deduct in the current year?
A)$- 0 -
B)$5,000
C)$1,540
D)$5,180
E)$10,400

Question

Quizplus · Accepted Answer

Kim can deduct $5,000 of the investigation expenses immediately. The remaining $5,400 is amortized over 180 months, resulting in an additional deduction of $180 for the current year, totaling $5,180.

Kim Owns and Operates a Restaurant on the North Side