Answer:
$50,400
Explanation:
Calculation to determine the amount of the deduction for the current year
First step is calculate the Research and experimental costs
Salary $250,000
Materials $90,000
Utilities $20,000
Depreciation $18,000
Research and experimental costs $378,000
($250,000+$90,000+$20,000+$18,000)
Now let determine the amount of the deduction for the current year
Current year deduction = $378,000/60 * 8
(Note that May-December will give us 8 months)
Current year deduction = $50,400
Therefore the amount of the deduction for the current year is $50,400
