Accounting For Rd Costs Martinez Company Incurred The Following Costs

Accounting for R&D Costs Martinez Company incurred the following costs during 2010 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)………………………………………$330,000

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

Compute the amount to be reported as research and development expense by Martinez on its income statement for 2010. Assume equipment is purchased at the beginning of the year.

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