Reference no: EM132725579

HIJ Company is an entity that provides engineering and operational support services to aircraft manufacturers. The entity received a confirmed order from an aircraft manufacturer to develop a new design for ducting the air conditioning of an aircraft.

The entity incurred the following expenditures in the current year in pursuance of a project for the air conditioner duct:

Salaries of engineers, consultants and technicians 800,000;

Cost of developing the duct and producing the test model 1,000,000;

Additional cost for revising the ducting process to ensure that product could be introduced in the market 1,200,000;

Cost of developing the first model or prototype and testing it with air conditioners to ensure comparability 200,000;

Cost of conference for the introduction of this new project 300,000.

IJH Company incurred the following research and development costs in the current year:

Equipment acquired for use in various research and development projects 1,950,000;

Depreciation on the equipment 270,000;

Materials used 400,000;

Compensation costs of personnel 1,000,000;

Outside consulting fees 300,000;

Indirect costs appropriately allocated 500,000.

JHI Company incurred the following costs during the current year:

Modification to the formulation of a chemical product 270,000;

Troubleshooting in connection with breakdowns during commercial production 300,000;

Design of tools, jigs, molds and dies involving new technology 340,000;

Seasonal or other periodic design changes to existing products 370,000

Laboratory research aimed at discovery of new technology 430,000.

Problem 1: What amount should be reported as research and development expense in the current year for HIJ, IJH and JHI, RESPECTIVELY? (answers should be separated by semi-colon; no space)