Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2022. Blue had the following expenditures in connection with the project, all incurred in the U.S.:

2022

2023

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

7,000

6,000

Promotion expenses

11,000

18,000

Advertising

20,000

Equipment depreciation

15.000

14.000

Cost of market survey

8,000

The new product will be introduced for sale beginning in April 2024.

If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations.

a. Determine Blue Corporation's research and experimental expenditures for 2022 and 2023.

2022

2023

Amount of the deduction

b. Determine Blue Corporation's deduction for research and experimental expenditures for 2022 and 2023

Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2022. Blue had the following expenditures in connection with the project, all incurred in the U.S.: The new product will be introduced for sale beginning in April 2024. If an amount is zero, enter " 0 ". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. Determine Blue Corporation's research and experimental expenditures for 2022 and 2023. b. Determine Blue Corporation's deduction for research and experimental expenditures for 2022 and 2023