The question given states:

Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project in 2019 and 2020:

Salaries $500,000 $600,000

Materials $90,000 $70,000

Insurance $8,000 $11,000

Utilities $6,000 $8,000

Cost of inspect of mat for qual control $7,000 $6,000

Promotion exp $11,000 $18,000

Advertising 0 $20,000

Equip Deprec. $15,000 $14,000

Cost of Market Survey $8,000 0

The new product will be introduced for sale beginning in July 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, and 2021.

So part b says "If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be?

The answer is $132,198 per the document on here as well as the system.

However, when you add up all of the salaries, materials, insurance, utilities, and equipment depreciation, it totals to $1,322,000 and when you multiply that by 6/60, it equals $132,200.

So I am curious how the answer is $132,198?

Thank you.