Homework answers / question archive / ABC Roofing Company is investigating two businesses during March 2020

ABC Roofing Company is investigating two businesses during March 2020

Accounting

Share With

ABC Roofing Company is investigating two businesses during March 2020. They are investigating acquiring XYZ Roofing Company. They are also investigating Cupcakes, Etc. Bakery, ABC Roofing expends $20,000 investigating XYZ Roofing Company but DOES NOT acquire them. ABC Rooting expends $5,000 investigating Cupcakes, Etc. Bakery and DOES acquire them in November, 2020. What amounts can ABC Roofing Company deduct from these investigative expenses? In what year can they deduct it?