Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2013. Blue had the following expenses in connection with the project:

The new product will be introduced for sale beginning in July 2015. Determine the amount of the deduction for research and experimental expenditures for 2013, 2014, and 2015 if:
a. Blue Corporation elects to expense the research and experimental expenditures.
b. Blue Corporation elects to amortize the research and experimental expenditures over 60 months?

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2013 2014 Salaries Materials Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey $500,000 $600,000 90,000 70,000 11,000 8,000 6,000 18,000 -020,000 14,000 8,000 6,000 7,000 11,000 15,000 8,000