An Activity That Would Be Expensed Currently as Research and Development

question 44

Multiple Choice

An activity that would be expensed currently as research and development costs is the

• A) Testing in search for or evaluation of product or process alternatives
• B) Adaptation of an existing capability to a particular requirement or customer's need as a part of continuing commercial activity
• C) Legal work in connection with patent applications or litigation, and the sale or licensing of patents
• D) Engineering follow-through in an early phase of commercial production

---

Definitions:

Education Credit Deduction

A tax benefit that reduces the amount of income tax owed by students or their families based on qualified education expenses, intended to decrease the cost of further education.

Qualified Expenses

Specific expenses that meet the criteria to be tax-deductible or eligible for tax credits.

Dependent

A person who relies on another, typically a family member, for financial support and qualifies for certain tax benefits on the supporter's tax return.

Tuition

The charge or fee for instruction, as at a private school or a college or university, often eligible for tax credits or deductions under certain conditions.