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Legoria Co. incurred the following costs during the year related to the creation of a new type of personal computer machine.

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Ans. Particulars Amount
Salaries $220,000
Depreciation on R&D facilities and equipment $125,000
Utilities and other direct costs incurred for R&D facilities $66,000
Payment to another company for performing a portion of the development work $120,000
Total Research and Development expenses $531,000
*All expenses that are related to Research and Development are included in the calculation.
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