Peeter 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 $ 90,000 70,000 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 30,000 45,000 35,000 50,000 Research costs subcontracted to a local university $ 320,000 Total i Data Table 90,000 70,000 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 30,000 45,000 35,000 50,000 Research costs subcontracted to a local university $ 320,000 Total Peeter'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