Daschle LLC Completed Some Research and Development During June of the Current

question 95

Multiple Choice

Daschle LLC completed some research and development during June of the current year. The related costs were $60,000. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization expense Daschle may deduct during the current year?

• A) $0
• B) $6,500
• C) $7,000
• D) $12,000
• E) None of these

---

Definitions:

Payments

Transactions by which goods, services, or obligations are paid for through the transfer of money or its equivalents.

Compounded Monthly

A method where interest earned is added to the principal monthly, so that each subsequent interest calculation is made on a larger amount.

Retirement Savings Plan

A financial arrangement designed to help individuals save for their retirement, offering various tax advantages.

Contributions

Payments or deposits made into a particular fund or account for the purposes of investment or savings growth.