Zenon Corporation (a calendar-year corporation) began work on a new experimental project in year 1. It incurred $8,000 in qualifying research expenses in year 1 and $11,000 in year 2. The benefits from the project will be realized beginning in February year 3.
a. If Zenon elects a 60-month amortization period, how much will it deduct in years 1, 2, and 3?
b. If Zenon elects to expense the research expenditures, how much will it deduct in years 1, 2, and 3?