Reference no: EM132701962

Question - Cullumber 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 R&D projects over the next 5 years (uses straight-line depreciation) $286,500

Materials consumed in R&D projects 56,300

Consulting fees paid to outsiders for R&D projects 123,000

Personnel costs of persons involved in R&D projects 139,000

Indirect costs reasonably allocable to R&D projects 46,300

Materials purchased for future R&D projects 33,300

Required - Compute the amount to be reported as research and development expense by Cullumber on its current year income statement. Assume equipment is purchased at the beginning of the year.