Lavender,Inc. ,incurs research and experimental expenditures of $210,000 in 2015.Determine the amount of the AMT adjustment for 2015 and for 2016 if for regular income tax purposes:
a.Lavender expenses the research and experimental expenses.
b.Lavender capitalizes the research and experimental expenses and elects to amortize them over a 10-year period.

Question

Lavender,Inc. ,incurs research and experimental expenditures of $210,000 in 2015.Determine the amount of the AMT adjustment for 2015 and for 2016 if for regular income tax purposes: ​
a.Lavender expenses the research and experimental expenses.
b.Lavender capitalizes the research and experimental expenses and elects to amortize them over a 10-year period.

Quizplus · Accepted Answer

The Answer of Lavender,Inc. ,incurs research and experimental expenditures of $210,000 in 2015.Determine the amount of the AMT adjustment for 2015 and for 2016 if for regular income tax purposes: ​
a.Lavender expenses the research and experimental expenses.
b.Lavender capitalizes the research and experimental expenses and elects to amortize them over a 10-year period.