In its income statement for the current year

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Reference no: EM131020969

During the current year, Orr Company incurred the following costs:

Research and development services performed by Key Corp. for Orr	$	150,000
Design, construction, and testing of preproduction prototypes and models		200,000
Testing in search for new products or process alternatives		175,000

In its income statement for the current year, what amount should Orr report as research and development expense?

$150,000
$350,000
$200,000
$525,000

Reference no: EM131020969

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