E12-17B (Accounting for R&D Costs) Tettleton 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 research and development projects over the next 5 years (uses straight-line depreciation) $300,000 Materials consumed in research and development projects 75,000 Consulting fees paid to outsiders for research and development projects 123,000 Personnel costs of persons involved in research and development projects 215,000 Indirect costs reasonably allocable to research and development projects 48,000 Materials purchased for future research and development projects 72,000 Instructions Compute the amount to be reported as research and development expense by Tettleton on its income statement for the current year. Assume equipment is purchased at the beginning of the year.
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