Which of the following expenditures will qualify as a research expenditure for purposes of the research credit?
A)An ice cream producer develops a new type of packaging that will keep ice cream frozen while driving home from the grocery store.
B)An ice cream producer develops a new design on the package that will be more pleasing to the culture of a new market it is entering.
C)An ice cream producer develops a new marketing campaign to introduce its brand to a new region of the country it is entering.
D)All of the above qualify as research expenditures for the research credit.

Question

Quizplus · Accepted Answer

Only choice A qualifies as a research expenditure because it involves the development of a new technology (packaging) that requires experimentation and testing to determine its effectiveness. Choices B and C involve market research and advertising, which do not meet the criteria for research expenditures.

Which of the Following Expenditures Will Qualify as a Research