Reference no: EM132829202

During the year, Marmalade Company began work on a research and development project. The project was completed and commercial production of the developed product began in December. All of the following expenditures were included in the R& D expense account:

1. Salaries and wages for laboratory research: 1,000,000
2. Design of preproduction prototype: 200,000
3. Construction of preproduction prototype: 150,000
4. Quality control during commercial production: 100,000
5. Materials and supplies consumed for laboratory research: 400,000
6. Purchase of equipment which will be used in current and future projects (useful life is 5 years): 600,000
7. Patent filing and legal fees for completed project: 50,000
8. Payments to others for research: 300,000

Problem 1: What amount should Marmalade report as research and development expense for the current year?

A. 2,650,000
B. 2,170,000
C. 2,050,000
D. 2,350,000