In 2018, Robin Corporation Incurred the Following Expenditures in Connection

question 92

Essay

In 2018, Robin Corporation incurred the following expenditures in connection with the development of a new product: $$\begin{array}{l}\begin{array} { l r } \text { Salaries } & \$ 100,000 \\\text { Supplies } & 40,000 \\\text { Market survey } & 10,000 \\\text { Depreciation } & 25,000\end{array}\\\\\text { In 2019, Robin incurred the following additional expenditures in connection with the development of the product: }\\\\\begin{array} { l r } \text { Salaries } & \$ 125,000 \\\text { Supplies } & 50,000 \\\text { Depreciation } & 30,000 \\\text { Advertising } & 10,000\end{array}\end{array}$$ In October 2019, Robin began receiving benefits from the project.If Robin elects to expense research and experimental expenditures, determine the amount and year of the deduction.

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Definitions:

Straight-Line Depreciation

A technique for laying out the expense of a solid asset over its viable life in consistent annual segments.

Initial Investments

The upfront expenses incurred when starting a new project, business, or investment.

Income Taxes

Taxes levied by governments on the income generated by businesses or individuals within their jurisdiction.

Income Tax Expense

The cost of taxes a company must pay based on its earnings, which can affect its net income and financial statements.