In 2018, Phoenix Corporation acquires a new research facility and hires several scientists to develop new products. No new products are developed until 2019, although the following expenditures were incurred:

Laboratory materials .............................................................................................. $ 40,000
Research salaries ....................................................................................................... 80,000
Overhead attributable to the research facility ....................................................... 30,000
R&E equipment placed into service (5-year MACRS recovery period) ............... 100,000
Total .......................................................................................................................... $250,000

a. What are Phoenix Corporation's deductions for R&E expenditures in 2018 and 2019 if the expensing method is elected?

b. How would your answer to Part a change if the deferral and amortization method were elected and the amortization period were 60 months?