Reference no: EM133075731
Question - Accounting for R&D Costs - Martinez Company incurred the following costs during 2015 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
1. (Uses straight-line depreciation) $330,000
2. Materials consumed in R&D projects 59,000
3. Consulting fees paid to outsiders for R&D projects 100,000
4. Personnel costs of persons involved in R&D projects 128,000
5. Indirect costs reasonably allocable to R&D projects 50,000
6. Materials purchased for future R&D projects 34,000
Compute the amount to be reported as research and development expense by Martinez on its income statement for 2015. Assume equipment is purchased at the beginning of the year and economic viability has not been achieved.