Reference no: EM132725583

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

Research and development services performed by another entity for KLM Company 300,000;

Design, construction and testing of preproduction prototype and model 400,000

Testing in search for new product or process alternative 350,000;

LMK Company incurred the following research and development costs during the current year:

Equipment purchased for current and future projects 200,000;

Equipment purchased for current project only 400,000;

Research and development salaries of current project 800,000;

Legal fees to obtain patent 100,000;

Material and labor costs for prototype product 1,200,000.

The equipment has a five-year useful life and is depreciated using the straight line.

MKL Company incurred the following costs during the current year:

Direct costs of doing contract research and development work for the government to be reimbursed by the government unit 800,000;

Research and development costs not included above were:

Depreciation 600,000;

Salaries 1,400,000;

Indirect costs appropriately allocated 400,000;

Materials 360,000.

Problem 1: What amount should be recognized as research and development expense in the current year for KLM, LMK and MKL, RESPECTIVELY? (answers should be separated by semi-colon; no space)