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Oriole Company incurred the following costs during the current year in connection with its research and...

Oriole 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) $287,500
Materials consumed in R&D projects 56,500
Consulting fees paid to outsiders for R&D projects 125,000
Personnel costs of persons involved in R&D projects 125,500
Indirect costs reasonably allocable to R&D projects 46,500
Materials purchased for future R&D projects 33,500


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

Total to be expensed for research and Development
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Answer #1

Answer:

Cost of equipment depreciation 57500 =287500/5
Materials consumed in R&D projects 56500
Consulting fees paid to outsiders for R&D projects 125000
Personnel costs of persons involved in R&D projects 125500
Indirect costs reasonably allocable to R&D projects 46500
Total to be expensed for research and Development 411000
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