Problem 7-39 (LO. 5) 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: Salaries Materials. Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey Amount of the deduction Feedback The new product will be introduced for sale beginning in April 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. Check My Work Partially correct 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 $500,000 $600,000 90,000 70,000 8,000 11,000 6,000 8,000 7,000 6,000 11,000 18,000 20,000 14,000 2019 Amount of the deduction 0 ✓ 0 15,000 8,000 2022 2020 0 0 X c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)? 2021 2023 198,297 2022 X X
Problem 7-39 (LO. 5) 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: Salaries Materials. Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey Amount of the deduction Feedback The new product will be introduced for sale beginning in April 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. Check My Work Partially correct 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 $500,000 $600,000 90,000 70,000 8,000 11,000 6,000 8,000 7,000 6,000 11,000 18,000 20,000 14,000 2019 Amount of the deduction 0 ✓ 0 15,000 8,000 2022 2020 0 0 X c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)? 2021 2023 198,297 2022 X X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hh.80.
![Problem 7-39 (LO. 5)
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:
Salaries
Materials
Insurance
Utilities
Cost of inspection of materials for quality control
Promotion expenses
Advertising
Equipment depreciation
Cost of market survey
Amount of the deduction
Feedback
Check My Work
Partially correct
2019
The new product will be introduced for sale beginning in April 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.
2019
Amount of the deduction
b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the
deduction be?
0
$500,000 $600,000
90,000
70,000
8,000
11,000
6,000
8,000
7,000
6,000
11,000
18,000
20,000
14,000
0
15,000
8,000
2020
2022
2020
0
0
X
c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)?
2021
2023
198,297
2022
X
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2be1d38-35fb-42d3-9555-5f0bdf65651e%2F08486291-bab6-40fe-ac5e-eb8306d5ffa0%2Frtcwou_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 7-39 (LO. 5)
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:
Salaries
Materials
Insurance
Utilities
Cost of inspection of materials for quality control
Promotion expenses
Advertising
Equipment depreciation
Cost of market survey
Amount of the deduction
Feedback
Check My Work
Partially correct
2019
The new product will be introduced for sale beginning in April 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.
2019
Amount of the deduction
b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of the
deduction be?
0
$500,000 $600,000
90,000
70,000
8,000
11,000
6,000
8,000
7,000
6,000
11,000
18,000
20,000
14,000
0
15,000
8,000
2020
2022
2020
0
0
X
c. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)?
2021
2023
198,297
2022
X
X
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