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:

Expansion

The process of a business or economy growing and increasing its production and activities.

Records

Documents, files, or electronic data that provide evidence of activities, transactions, or decisions, or can refer to vinyl discs used for playing music.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period, characterized by periods of expansion and contraction.

Troughs

The low points in the economic cycle, characterized by reduced economic activity and lower levels of production and employment.