Compute the amount to be reported as research

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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.

Reference no: EM131613686

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