Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2017. Blue had the following expenses in connection with the project:

The new product will be introduced for sale beginning in July 2019. Determine the amount of the deduction for research and experimental expenditures for 2017, 2018, and 2019 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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2017 2018 Salaries $500,000 $600,000 70,000 Materials 90,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control Promotion expenses 7,000 6,000 11,000 18,000 -0- 20,000 Advertising Equipment depreciation Cost of market survey 15,000 14,000 8,000 -0-