Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project: 2019 2020 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising 0 20,000 Equipment depreciation 15,000 14,000 Cost of market survey 8,000 0 Question Content Area The new product will be introduced for sale beginning in April 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, 2021, and 2022. b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? 2019 2020 2021 2022 Amount of the deduction
Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project: 2019 2020 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising 0 20,000 Equipment depreciation 15,000 14,000 Cost of market survey 8,000 0 Question Content Area The new product will be introduced for sale beginning in April 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, 2021, and 2022. b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? 2019 2020 2021 2022 Amount of the deduction
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 40P
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Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project:
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Question Content Area
The new product will be introduced for sale beginning in April 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, 2021, and 2022.
b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be?
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