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 $2023.$

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Section $174$ covers the treatment of research and experimental expenditures. The Regulations define research and experimental exper

follows: all such costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an inventi

similar property, and the improvement of already existing property of the type mentioned. The term does not include expenditures suc

for the ordinary testing or inspection of materials or products for quality control or those for efficiency surveys, management studies,

surveys, advertising, or promotions.

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