Thomas More Company incurred the following costs during the
current year in connection with its research and development activities.
Cost of equipment acquired that will have alternative
uses in future R&D projects over the next 5 years
(uses straight-line depreciation) $280,000
Materials consumed in R&D projects 59,000
Consulting fees paid to outsiders for R&D projects 100,000
Personnel costs of persons involved in R&D projects 128,000
Indirect costs reasonably allocable to R&D projects 50,000
Materials purchased for future R&D projects 34,000

Instructions

Compute 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.