This year Bauer Corporation incurs the following costs in development of new products:
Laboratory supplies $ 55,000
Laboratory equipment purchased
(5-year recovery property) 50,000
Salaries (lab personnel) 90,000
No benefits are realized from the research expenditures until next year. If Bauer Corporation elects to expense the research expenditures, the deduction is:
A) $10,000 this year and $175,000 next year.
B) $175,000 next year.
C) $175,000 this year.
D) $215,000 this year.