Panit Corporation incurs the following costs in the initial year of doing business: (Click the icon to view the costs.) Requirement Which of these expenditures are deductible as R&E costs under Sec. 174? (Complete all input fields. Enter a "0" if an item is not deductible as an R&E cost under Sec. 174.) Amount Deductible Under Sec. 174 Cost 120,000 90,000 30,000 Materials and supplies for research laboratory Utilities and depreciation on research laboratory and equipment Costs of acquiring another entity's patent for a new product Market research salaries for surveys relative to proposed new products Labor and supplies for quality control tests Research costs subcontracted to a local university 40,000 35,000 50,000 $ 365,000 Total 120,000 90,000 30,000 Materials and supplies for research laboratory Utilities and depreciation on research laboratory and equipment Costs of acquiring another entity's patent for a new product Market research salaries for surveys relative to proposed new products Labor and supplies for quality control tests Research costs subcontracted to a local university 40,000 35,000 50,000 $ 365,000 Total Panit's controller states that all of these costs are qualifying R&E expenditures and that the company policy is to expense such amounts for tax purposes in the year they are incurred. Print Done