Erics Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2021. Erics has the following expenses in connection with the project:

2021 2022

Salaries $200,000 $300,000

Materials $80,000 $90,000

Insurance $12,000 $12,000

Utilities $8,000 $10,000

Cost of inspection for quality control $5,000 $7,000

Promotion expenses $20,000 $0

Advertising $0 $18,000

Equipment depreciation $15,000 $15,000

Cost of market survey $4,000 $0

The new product line will be introduced for sale beginning on July 1, 2023. Determine the amount of the deduction for research and experimental expenditures for 2021, 2022, and 2023 if:

1. Erics Corporation elects to expense the research & experimental expenditures
2. Erics Corporation elects to amortize the research and experimental expenditures over 60 months.