creams. X-Temp obtained a 14-year patent on the formula from the U.S. government. Which of the following statements is true?
X-Temp is allowed to deduct 50% of the research costs.
X-Temp’s tax basis in its patent is $275,000.
The $275,000 cost results in a favorable book-and-tax difference.
X-Temp is allowed to deduct the $275,000 research costs.
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