In Accounting for Research and Experimental Expenditures,all of the Following
In accounting for research and experimental expenditures,all of the following alternatives are available with the exception of
A)expense R&E costs in the year paid or incurred.
B)expense R&E costs in the year in which a product or process becomes marketable.
C)defer and amortize R&E costs as a ratable deduction over a period of 60 months or more.
D)capitalize and write off R&E costs only when the research project is abandoned or is worthless.
Costs that qualify as research and experimental expenditures include all of the following except
A)depreciation of laboratory equipment.
C)costs incurred in developing product improvements.
D)costs of obtaining a patent such as attorney fees.
This year Bauer Corporation incurs the following costs in development of new products: No benefits are realized from the research expenditures until next year.If Bauer Corporation elects to expense the research expenditures,the deduction is
A)$10,000 this year and $175,000 next year.
B)$175,000 next year.
C)$175,000 this year.
D)$215,000 this year.
Galaxy Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year at a cost of $90,000. No hardware was acquired. How much of the cost can Galaxy deduct this year?