In 2023 Bauer Corporation incurs the following costs 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 For 2023, the allowable deduction is A) $21,500. B) $175,000. C) $17,500. D) $215,000.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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In 2023 Bauer Corporation incurs the following costs
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
For 2023, the allowable deduction is A) $21,500. B)
$175,000. C) $17,500. D) $215,000.
Transcribed Image Text:In 2023 Bauer Corporation incurs the following costs 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 For 2023, the allowable deduction is A) $21,500. B) $175,000. C) $17,500. D) $215,000.
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