3. In its initial year, CULPRITScope, LLC, incurred several types of costs including:

a) research and design (including patent-related legal fees)

b) costs incurred in getting ready to sell the product

c) other expenditures not allocated

d) costs incurred after opening the doors

What are the possible alternatives for deducting each type of expenditure? (Disregard possible tax credits.) If more than one treatment is possible, describe the alternatives and the pros and cons.

How would your recommendations be affected if either Clark or Erik were subject to alternative minimum tax? Show computations for credit.