Agnes operates a Christmas Shop in Atlantic City, NJ. She makes a weekend trip to Vero Beach, FL, for the purpose of determining the feasibility of opening another shop. Her travel expenses are $2,000 (includes $500 for meals). In addition, she pays $5,000 to a market research firm in Vero Beach to prepare a feasibility study. Determine the amount of the expenses that Agnes can deduct if:
a. She opens a new shop in Vero Beach.
b. She decides not to open a new shop in Vero Beach.

Question

Quizplus · Accepted Answer

The Answer of Agnes operates a Christmas Shop in Atlantic City, NJ. She makes a weekend trip to Vero Beach, FL, for the purpose of determining the feasibility of opening another shop. Her travel expenses are $2,000 (includes $500 for meals). In addition, she pays $5,000 to a market research firm in Vero Beach to prepare a feasibility study. Determine the amount of the expenses that Agnes can deduct if:
a. She opens a new shop in Vero Beach.
b. She decides not to open a new shop in Vero Beach.

Agnes Operates a Christmas Shop in Atlantic City, NJ