Vane Company, a Calendar Year Taxpayer, Incurred the Following Expenditures $\quad$

Multiple Choice

Vane Company, a calendar year taxpayer, incurred the following expenditures in the preoperating phase of a new health and fitness center.
Rent on commercial space $\quad$$\quad$ $ 4,800
Utilities $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 735
Staff hiring and training $\quad$$\quad$$\quad$ 3,920
Newspaper advertising $\quad$$\quad$$\quad$$\quad$ 960
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 10,415
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