This Year Bauer Corporation Incurs the Following Costs in Development

question 13

Multiple Choice

This year Bauer Corporation incurs the following costs in development of new products: $$\begin{array} { | l | r | } \hline \text { Laboratory supplies } & \$ 55,000 \\\hline \text { Laboratory equipment purchased } & 50,000 \\\text { (5-year recovery property) } & \\\hline \text { Salaries (lab personnel) } & 90,000 \\\hline \text { Utilities } & 20,000 \\\hline \text { Total } & \$ 215,000 \\\hline\end{array}$$ No benefits are realized from the research expenditures until next year. If Bauer Corporation elects to expense the research expenditures, the deduction is

• A) $10,000 this year and $175,000 next year.
• B) $175,000 next year.
• C) $175,000 this year.
• D) $215,000 this year.

---

Definitions:

Natural Ability

Innate skills or talents that an individual possesses which facilitate the learning or performance of tasks with minimal effort.

Traditional IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities according to culturally defined norms.

Creativity

The ability to produce original and valuable ideas or articulate novel solutions to problems.

Wechsler Adult Intelligence Scale

A standardized test designed to measure intelligence and cognitive ability in adults and older adolescents.