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(1pts) 17) Blue Corporation incurred the following expenses in connection with the development of a new product: Salaries Uti
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Answer #1

Solution :

The Answer is (a) $ 0

Explanation : Deduction is repect of Research and Experimental Expenses Capitalized can be taken once the selling of product get started. In the question, it is given that Blue corporation is expected to start its product selling in the next year and the current year there is no sale of the developed product. So, the deduction would be zero as the company has not started its product selling in the current year. Therefore, it can't avail any deduction.

Therefore the Answer is (a).

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