Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2016. Blue had the following expenses in connection with the project

The new product will be introduced for sale beginning in July 2018. Determine the amount of the deduction for research and experimental expenditures for 2016, 2017, and 2018 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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2016 2017 Salaries Materials Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depredation Cost of market survey $500,000 $600,000 70,000 11,000 90,000 8,000 7,000 11,000 6,000 18,000 20,000 14,000 15,000