Part of the question
Blue Corporation incurred the following expenses in connection with the development of a new product:
Salaries $100,000
Utilities 18,000
Materials 25,000
Advertising 5,000
Market survey 3,000
Depreciation on machine 9,000
Answer:
a. $0
Step-by-step explanation:
From the question, we have the qualified research expenditures to be
=> $100,000 + $18,000 + $25,000 + $9,000 = $152,000
Also, given that under the election to amortize, the monthly amortization is
=> $152,000 ÷ 60 months = $2,533
Hence, given that, sales will not start until next year, there is no deduction for the current year, which implies that the right answer is $0