ChocoHealth Inc.is developing new chocolate products providing abundant health benefits at low calorie counts.For the past three years,it spent an average of $500,000 per year on research.ChocoHealth has spent $900,000 on research.The company has elected the simplified credit.For the current year,it will earn a research credit of
A)$54,000.
B)$126,000.
C)$80,000.
D)$91,000.

Question

Quizplus · Accepted Answer

D)[$900,000 - (50% × $500,000)× .14]= $91,000.