During the year,Green,Inc.,incurs the following research expenditures:

Green's qualifying research expenditures for the year are:

Question

During the year,Green,Inc.,incurs the following research expenditures:
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Green's qualifying research expenditures for the year are:

Quizplus · Accepted Answer

To calculate the qualifying research expenditures, we need to identify the expenditures that meet the criteria of being deductible as per the IRS regulations. The qualifying research expenses are the sum of the following:
- Wages paid to employees for conducting research activities
- Cost of materials used in the research
- Cost of computer rental time used in the research
Based on the given information, the wages paid to employees is $50,000, the cost of materials used in the research is $15,000, and the cost of computer rental time is $14,000. Therefore, the total qualifying research expenditures for Green, Inc. is $50,000 + $15,000 + $14,000 = $79,500. Hence, the best choice is C.

During the Year,Green,Inc.,incurs the Following Research Expenditures