Compute the amount to be reported as research

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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). $333,170
Materials consumed in R & D projects 51,082
Consulting fees paid to outsiders for R & D projects 101,300
Personnel costs of persons involved in R & D projects 127,300
Indirect costs reasonable allocable to R & D projects 48,028
Materials 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.

Reference no: EM13132690

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