During the year,Green,Inc.,incurs the following research expenditures: In-house wages, supplies, computer time$~~~~~~~~~~~~~~~~$$60,000
Paid Blue Foundation for research$~~~~~~~~~~~~~~~~~~~~~~~~~$30,000 Green's qualifying research expenditures for the year are:

Question

Quizplus · Accepted Answer

To qualify for the research credit, research expenditures must satisfy the following four-part test:

1. Must be incurred in research and experimentation 
2. Must be technological in nature 
3. Must be intended to eliminate uncertainty 
4. Must involve a process of experimentation

In this scenario, all of the listed expenditures appear to satisfy these criteria and can be included in calculating Green's qualifying research expenditures for the year:

- Wages for in-house research personnel ($30,000) 
- Contract research expenses ($40,000) 
- Supplies and materials ($5,000) 
- Computer leasing costs ($4,500)

Adding these amounts together results in a total of $79,500, which is answer choice C.

During the Year,Green,Inc ~~~~~~~~~~~~~~~~ $60,000 Paid Blue Foundation for Research ~~~~~~~~~~~~~~~~~~~~~~~~~ 30,000 Green's Qualifying Research Expenditures for the Year Are: A)$60,000

During the Year,Green,Inc $$ $60,000
Paid Blue Foundation for Research $~~~~~~~~~$ 30,000 Green's Qualifying Research Expenditures for the Year Are:
A)$60,000