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Question - 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 1, 2020.
Stanford incurred the following expenses:
Total investigation costs related to the restaurant $41,750
Total investigation costs related to the bakery 52,200
If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar.
Required - What is the maximum amount Stanford can deduct in 2020 for investigation expenses?
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