Vane Company,a Calendar Year Taxpayer,incurred the Following Expenditures in the Preoperating

Multiple Choice

Vane Company,a calendar year taxpayer,incurred the following expenditures in the preoperating phase of a new health and fitness center. Which of the following statements is true?

A) If Vane already operates seven other health and fitness centers,it can deduct the $10,415 preoperating expenditures of the eighth center as expansion costs.
B) If Vane is a cash basis taxpayer,it can deduct $10,415 in the year of payment.
C) If the new center represents a new business for Vane,it must capitalize the $10,415 preoperating expenditures.
D) None of the above is true