Question: crane company incurred the following costs during the current year...
Crane Company incurred the following costs during the current
year in connection with its research and development
|Cost of equipment acquired that will have alternative|
|uses in future R&D projects over the next 5 years|
|(uses straight-line depreciation)||$280,500|
|Materials consumed in R&D projects||55,100|
|Consulting fees paid to outsiders for R&D projects||111,000|
|Personnel costs of persons involved in R&D projects||131,500|
|Indirect costs reasonably allocable to R&D projects||45,100|
|Materials purchased for future R&D projects||32,100|
Compute the amount to be reported as research and development expense by Crane on its current year income statement. Assume equipment is purchased at the beginning of the year.
|Total to be expensed for research and Development|