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: 2019 2020 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising 0 20,000 Equipment depreciation 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, 2021, and 2022. If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations. A. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? 2019 2020 2021 and 2022 Amount of the deduction 2019 $619000 2020 $703,000 2021 $0 B. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? 2019 2020 2021 2022 Amount of the deduction 2019$0 2020 $0 2021 $132,198 2022$_______ C. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)? 2022 2023 Amount of the deduction 2022 $_______ 2023$______ I need help with B and C
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: 2019 2020 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising 0 20,000 Equipment
A. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? 2019 2020 2021 and 2022 Amount of the deduction 2019 $619000 2020 $703,000 2021 $0
B. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the deduction be? 2019 2020 2021 2022 Amount of the deduction 2019$0 2020 $0 2021 $132,198 2022$_______
C. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)? 2022 2023 Amount of the deduction 2022 $_______ 2023$______
I need help with B and C
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