36. LO.5 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 Materials Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey $500,000 90,000 8,000 6,000 7,000 11,000 -0- 15,000 8,000 $600,000 70,000 11,000 8,000 6,000 18,000 20,000 14,000 -0- 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