E12-17B (Accounting for R&D Costs) Tettleton Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future research and develop

E12-17B (Accounting for R&D Costs) Tettleton Company incurred the following costs during the current year in connection with its research and development activities.

Cost of equipment acquired that will have alternative

uses in future research and development projects

over the next 5 years (uses straight-line depreciation)              $300,000

Materials consumed in research and development projects           75,000

Consulting fees paid to outsiders for research and

development projects                                                                    123,000

Personnel costs of persons involved in research and

development projects                                                                    215,000

Indirect costs reasonably allocable to research and

development projects                                                                      48,000

Materials purchased for future research and development

projects                                                                                           72,000

Instructions

Compute the amount to be reported as research and development expense by Tettleton on its income statement for the current year. Assume equipment is purchased at the beginning of the year.