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Question
Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor:
Salaries $ 350,000 Depreciation on R&D facilities and equipment 190,000 Utilities and other direct costs incurred for the R&D facilities 79,000 Patent filing and related legal costs 35,000 Payment to another company for performing a portion of the development work 185,000 Costs of adapting the new monitor for the specific needs of a customer 93,000
What amount should Maxtor report as research and development expense in its income statement?
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