Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the follawing expenses in connection with the project: 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, If an amount is zero, enter " 0 ". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? Feadiack Chook My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs indident to the development of an experimental or pilat model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures such as those for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies, consumer surveys, advertising, or promotions. Check My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures such as those for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies, consumer surveys, advertising, or promotions. b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)? Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the follawing expenses in connection with the project: 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, If an amount is zero, enter " 0 ". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? Feadiack Chook My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs indident to the development of an experimental or pilat model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures such as those for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies, consumer surveys, advertising, or promotions. Check My Work Section 174 covers the treatment of research and experimental expenditures. The Regulations define research and experimental expenditures as follows: all such costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures such as those for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies, consumer surveys, advertising, or promotions. b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)
