Question: Tom a calendar year taxpayer informs you that during the

Tom, a calendar year taxpayer, informs you that during the year, he incurs expenditures of $40,000 that qualify for the incremental research activities credit. In addition, it is determined that his research-credit base amount for the year is $32,800.
a. Determine Tom's incremental research activities credit for the year.
b. Tom is in the 25% tax bracket. Determine which approach to the research expenditures and the research activities credit (other than capitalization and subsequent amortization) would provide the greater tax benefit to Tom.

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  • CreatedMay 25, 2015
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