Which of the Following Statements About the Tax Treatment of Research

question 2

Multiple Choice

Which of the following statements about the tax treatment of research and experimental expenditures is true?

• A) The treatment violates the tax principle of conservatism.
• B) The treatment creates a favorable book/tax difference.
• C) The treatment minimizes the after-tax cost of the expenditures.
• D) Both the treatment violates the tax principle of conservatism and the treatment minimizes the after-tax cost of the expenditures are true.

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