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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). $333,170Materials consumed in R & D projects 51,082Consulting fees paid to outsiders for R & D projects 101,300Personnel costs of persons involved in R & D projects 127,300Indirect costs reasonable allocable to R & D projects 48,028Materials purchased for future R & D projects 32,220
Compute the amount to be reported as research and development expense by Martinez on its income statement for 2010. Assume equipment is purchased at beginning of year.
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