During the year, Green, Inc, incurs the following research expenditures:
In-house wages, supplies, computer time $60,000
Paid to Blue Foundation for research 30,000
Green's qualifying research expenditures for the year are:
a. $60,000.
b. $75,000.
c. $79,500.
d. $90,000.
e. None of the above.
c
RATIONALE: $79,500 = $60,000 + ($30,000 × 65%).
You might also like to view...
An unrealized loss on investment securities results in a deferred tax asset because the loss reduces pre-tax income but has no effect on taxable income.
Answer the following statement true (T) or false (F)
Arthur has attached a device to a local ATM machine that records customers' bank account numbers and PINs. He then sells these account numbers and PINs to nefarious individuals who use the information to steal money from the customers' accounts. Arthur is
A. not guilty of a crime because he was not the one stealing the money. B. guilty of a crime under the Computer Fraud and Abuse Act as amended by the Patriot Act. C. guilty of the crime of embezzlement. D. guilty of a crime under the Mail Fraud Act.
Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?
a. This statement must classify cash flows into three categories: operating, investing, and financing activities. b. Cash equivalents must be combined with cash in preparing this statement. c. Working capital may be used as a substitute for cash in preparing this statement. d. The title for this statement is "Statement of Cash Flows."
In terms of cost behavior, telephone expense and direct materials are classified as
a. variable and fixed, respectively. b. fixed and variable, respectively. c. mixed and fixed, respectively. d. mixed and variable, respectively.