Determine sarah incremental research activities

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Question - Sarah, a calender year taxpayer, informs you that during the year she incurs expenditures of $30,000 that qualify for the incremental research activities credit. In addition, in it determined that her base amount of the year is $22,800.

a) Determine Sarah's incremental research activities for the year.

b) Sarah is in the 25% tax bracket. Determine which approach to the research expenditures and the research activities credit (other than capitalization and subsequent amortization) would provide the greater tax benefit to Sarah.

Reference no: EM131873967

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