Park Corporation incurs the following costs in the initial year of doing business:
Materials and supplies for research laboratory …………………………….. $ 80,000
Utilities and depreciation on research laboratory and equipment ………….. 40,000
Costs of acquiring another entity’s patent for a new product …………..…. 20,000
Market research salaries for surveys relative to proposed new products…… 60,000
Labor and supplies for quality control tests ………………………………… 50,000
Research costs subcontracted to a local university ………………………….. 35,000
Total …………..…………………………………………………………… $285,000
Park’s controller states that all of these costs are qualifying R&E expenditures and that the company policy is to expense such amounts for tax purposes in the year they are incurred. Which of these expenditures are deductible as R&E costs under Sec. 174?