Which of the following statements about the tax treatment of research and experimental expenditures is true?
A) The treatment violates the tax principle of conservatism.
B) The treatment creates a favorable book/tax difference.
C) The treatment minimizes the after-tax cost of the expenditures.
D) Both a. and c. are true.

Question

Quizplus · Accepted Answer

The treatment minimizes the after-tax cost of the expenditures by allowing the immediate deduction of the expenditures, which creates a favorable book/tax difference.

Which of the Following Statements About the Tax Treatment of Research