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: 

The new product will be introduced for sale beginning in July 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, and 2021 if: 

a. Blue Corporation elects to expense the research and experimental expenditures. 

b. Blue Corporation elects to amortize the research and experimental expenditures over 60 months.

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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 Promotion expenses 7,000 6,000 11,000 18,000 Advertising Equipment depreciation Cost of market survey -0- 20,000 15,000 14,000 8,000 -0-