ChocoHealth Inc

question 36

Multiple Choice

ChocoHealth Inc.is developing new chocolate products providing abundant health benefits at low calorie counts.For the past three years,it spent an average of $500,000 per year on research.ChocoHealth has spent $900,000 on research.The company has elected the simplified credit.For the current year,it will earn a research credit of

• A)$54,000.
• B)$126,000.
• C)$80,000.
• D)$91,000.

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Definitions:

Expected-Rate-of-Return Curve

A graphical representation showing the relationship between the expected return on investment and different levels of investment in a project.

R&D

Stands for Research and Development; activities companies undertake to innovate and introduce new products or processes.

Patentable

Capable of being protected by a patent, which grants the holder exclusive rights to an invention or process for a certain period.

Imitation

The action of using someone or something as a model and attempting to replicate their behavior, strategy, or design.