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Question: West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.
Salaries for R&D $440,000
Depreciation on R&D facilities and equipment 135,000
Utilities incurred for the R&D facilities 6,000
Patent filing and related legal costs 22,000
Payment to another company for part of thedevelopment work 110,000
What amount should West Coast Growers report as research and development (R&D) expense in its income statement?
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