Bethany incurred $40,750 in research and experimental costs for developing a specialized product during july of year 1. bethany went through a lot of trouble and spent $17,250 in legal fees to receive a patent for the product in august of year 3.bethany expects the patent to have a remaining useful life of 10 years. (do not round intermediate calculations.) a. what amount of research and experimental expenses for year 1, year 2, and year 3 may bethany deduct if she elects to amortize the expenses over 60 months? (round your final answers to nearest whole dollar amount.) b. how much patent amortization expense would bethany deduct in year 3 assuming she elected to amortize the research and experimental costs over 60 months? c. if bethany chose to capitalize but not amortize the research and experimental expenses she incurred in year 1, how much patent amortization expense would bethany deduct in year 3?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?