Mr. and Mrs. FB, a retired couple, decided to open a family restaurant. During March and April, they incurred the following expenses: Prepaid rent on commercial real estate ($2,100 per month from April through December) Prepaid rent on restaurant equipment ($990 per month from April through December) Advertising of upcoming grand opening Staff hiring and training $ 18,900 8,910 900 11,500 $ 40,210 Mr. and Mrs. FB served their first meal to a customer on May 1. Determine the tax treatment of the given expenses on their tax return. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Mr. and Mrs. FB, a retired couple, decided to open a family restaurant. During March and April, they incurred the following expenses: Prepaid rent on commercial real estate ($2,100 per month from April through December) Prepaid rent on restaurant equipment ($990 per month from April through December) Advertising of upcoming grand opening Staff hiring and training $ 18,900 8,910 900 11,500 $ 40,210 Mr. and Mrs. FB served their first meal to a customer on May 1. Determine the tax treatment of the given expenses on their tax return. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 25P

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