This year Bauer Corporation incurs the following costs cost in development of new products

laboratory supplies 55,000

laboratory equipment purchased (5-year recovery property) 50,000

salaries (lab personnel) 90,000

utilities 20,000 

total 215,000

no benefits are realized from the research expenditures until next year.

If Bauer Corporation elects to expense the research expenditures, the deduction is

a. $215,000 this year

b. $175,000 next year

c. $10,000 this year and $175,000 next year

d. $175,000 this year