Chapter 7, Problem B

Armando Corporation incurred the following expenses:

	2019	2020
Research and Development	619,000	703,000

The new product will be available for sale July 1, 2021. Calculate the deduction for R&D expenses for 2019, 2020, and 2021 under the following independent assumptions:

a. If electing expense, calculate the deduction for 2019. b. If electing expense, calculate the deduction for 2020. c. If electing expesne, calculate the deduction for 2021. d. If electing amortization over 60 months, calculate the deduction for 2019. e. If electing amortization over 60 months, calculate the deduction for 2020. f. If electing amortization over 60 months, calculate the deduction for 2021.