7. Bangor Company incurred $70,000 of research costs in year one. In May of year two, it began to sell the products developed through this research. Which of the following is correct regarding these expenditures? 1. Bangor can deduct $9,333 in year two. 2. Bangor can deduct $35,000 of the costs in each of years one and two 3. Bangor can deduct all $70,000 in year two. 4. Bangor cannot deduct the expenditures unless it abandons the project