Which of the Following Expenditures Will Qualify as a Research

question 107

Multiple Choice

Which of the following expenditures will qualify as a research expenditure for purposes of the research credit?

• A)An ice cream producer develops a new type of packaging that will keep ice cream frozen while driving home from the grocery store.
• B)An ice cream producer develops a new design on the package that will be more pleasing to the culture of a new market it is entering.
• C)An ice cream producer develops a new marketing campaign to introduce its brand to a new region of the country it is entering.
• D)All of the above qualify as research expenditures for the research credit.

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Definitions:

Manufacturing Sector

The segment of the economy concerned with the production of goods through the processing of raw materials and components into finished products.

Small Businesses

Refers to privately owned corporations, partnerships, or sole proprietorships that have fewer employees and lower annual revenue than a regular-sized business or corporation.

Wholesaling

The selling of goods in large quantities at lower prices to be retailed by others.