Blaze operates a restaurant in Cleveland. He travels to Columbus to investigate acquiring a business. He incurs expenses as follows: $1,500 for travel, $2,000 for legal advice, and $3,500 for a market analysis. Based on the different tax consequences listed below, describe the circumstances that were involved in Blaze's investigation of the business.

See explanation

Explanation:

Here are the tax consequences listed below:.

1. Blaze deducts the $7000 of expense

2. Blaze cannot deduct any of the $7000 of expense.

3. Blaze deducts $5000 of the expenses and ammortizes the $2000 over a period of 180 months.

1. Blaze deducts the $7000 of expense

The entire expenses of $7000 can be deducted by Blaze because the expenses have been incurred for the investigation of the business acquiring.

2. Blaze cannot deduct any of the $7000 of expense

Blaze cannot be able to deduct any of the $7000 of expense in a case whereby the business that was investigated wasn't a restaurant and in this case, he didn't acquire it.

3. Blaze deducts $5000 of the expenses and ammortizes the $2000 over a period of 180 months.

In this case, the business wasn't a restaurant but he still ended up getting the business.

answerindividual preferences are not revealed in the market for the good;