Reference no: EM131613686
Question - 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 alternatives uses in future R&D projects over the next 5 years (uses straight-line depreciation) - $282,000
Materials consumed in R&D projects - 55,400
Consulting fees paid to outsiders for R&D projects - 114,000
Personal costs of persons involved in R&D projects - 128,000
Indirect costs reasonably allocable to R&D projects - 45,400
Materials purchased for future R&D projects - 32,400
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.
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