Thomas More Company incurred the following costs during the current year in connection with its research and development activities.\nCost of equipment
Thomas More Company incurred the following costs during the current year in connection with its research and development activities.
\r\nCost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years (uses straight-line depreciation) $280,000
\r\nMaterials consumed in R&D projects 59,000
\r\nConsulting fees paid to outsiders for R&D projects 100,000
\r\nPersonnel costs of persons involved in R&D projects 128,000
\r\nIndirect costs reasonably allocable to R&D projects 50,000
\r\nMaterials purchased for future R&D projects 34,000
\r\nInstructions
\r\nCompute the amount to be reported as research and development expense by More on its current year income statement. Assume equipment is purchased at the beginning of the year.