hapter 6-9 Saved Help Save & Exit Submit Lovely Cosmetics Incorporated incurred $785.000 research costs on the development of its formula for a new line of face creams. Lovely obtained a 17-year patent on the formula from the U.S. government. Which of the following statements is true? Multiple Choice O Lovely is allowed to deduct the $785.000 research costs. V Lovely's tax basis in its patent is $785,000 > C The $785,000 cost results in a favorable book/tax difference. K Both Lovely is allowed to deduct the $785,000 research costs and Lovely's tax basis in its patent is $785,000 are true