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Glass House Co. decides to develop a new software. The project begins in 2019. Glass House Co. incurs the following expenses in 2019 and 2020 in connection with the project:                                                               2019                            2020 Salaries                                               $31,000                     $19,000 Equipment                                         $18,000                     $21,000 Depreciation on equipment             $19,500                     $15,500   Glass House Co. elected to apply a deferral and amortization method. The benefits from the project will be realized starting on May 1st, 2021. How much can Glass House Co. deduct for R&E expenses in 2021? Group of answer choices $12,400 $18,600 $16,533 $20,667

Glass House Co. decides to develop a new software. The project begins in 2019. Glass House Co. incurs the following expenses in 2019 and 2020 in connection with the project:                                                               2019                            2020 Salaries                                               $31,000                     $19,000 Equipment                                         $18,000                     $21,000 Depreciation on equipment             $19,500                     $15,500   Glass House Co. elected to apply a deferral and amortization method. The benefits from the project will be realized starting on May 1st, 2021. How much can Glass House Co. deduct for R&E expenses in 2021? Group of answer choices $12,400 $18,600 $16,533 $20,667

Individual Income Taxes
Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 28CE
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Glass House Co. decides to develop a new software. The project begins in 2019. Glass House Co. incurs the following expenses in 2019 and 2020 in connection with the project:

                                                              2019                            2020

Salaries                                               $31,000                     $19,000

Equipment                                         $18,000                     $21,000

Depreciation on equipment             $19,500                     $15,500

 

Glass House Co. elected to apply a deferral and amortization method. The benefits from the project will be realized starting on May 1st, 2021. How much can Glass House Co. deduct for R&E expenses in 2021?

Group of answer choices

$12,400

$18,600

$16,533

$20,667

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