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Question - In 2017, Cullumber Corporation incurred research and development costs as follows:
Materials and equipment $99000
Personnel 119000
Indirect costs 159000
$377000
These costs relate to a product that will be marketed in 2018. It is estimated that these costs will be recouped by December 31, 2020. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2017?
a) $278000.
b) $377000.
c) $0.
d) $258000.
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