Daschle LLC completed some research and development during June of the current year. The related costs were $60,000. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization expense Daschle may deduct during the current year?
A) $0.
B) $6,500.
C) $7,000.
D) $12,000.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The amortization when capitalization is elected is $7,000 ($60,000/60) × 7 months. The amortization period on capitalized research and development is not less than 60 months-and 60 months is the most often elected.

Daschle LLC Completed Some Research and Development During June of the Current