Doggie Rx Inc.is a new company developing a tasty chewable pill for dogs that will protect them from all types of fleas,ticks and intestinal parasites.This is its first year of business,and it has spent $500,000 on qualifying research expenditures.Doggie Rx will earned a simplified research credit of
A)$30,000.
B)$70,000.
C)$15,000.
D)$250,000.

Question

Quizplus · Accepted Answer

The simplified research credit is 20% of the first $50,000 of qualified research expenditures, plus 10% of the next $50,000. Therefore, Doggie Rx will earn a simplified research credit of $30,000.