What amount of qualified research and development expenses qualifies for the Credit For Increasing Research Activities for Windy River Automotive Corporation?

The amount of $400,000 in qualified research and development expenses represents the eligible expenditures that Windy River Automotive Corporation can claim for the Credit For Increasing Research Activities. In general, this credit is intended to incentivize businesses to invest in research and development by allowing them to receive a tax credit based on their incremental research expenses.

Typically, qualified expenses include wages for employees directly involved in R&D, costs of supplies used in conducting research, and certain types of contract research expenses. The amount claimed must be calculated based on the company's growth in R&D spending over a specified period compared to a predetermined base amount.

In this case, $400,000 signifies the calculated increase in qualifying expenses as determined under the guidelines set by the IRS for the credit. This amount highlights how the firm has successfully invested in innovation and development, which is pivotal in the competitive automotive industry.