In 2015, the Slidell Corporation incurred research and development costs as follows: Materials and equipment . .

Question:

In 2015, the Slidell incurred research and development costs as follows:
Materials and equipment . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . $160,000
Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . ... 105,000
Indirect costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 60,000
.............................................................................................$325,000
These costs relate to a product that will be marketed in 2016. It is estimated that these costs will be recouped by December 31, 2019.
1. What is the amount of research and development costs that should be expensed in 2015?
2. Assume that of these costs, equipment of $80,000 can be used on other research projects. Estimated useful life of the equipment is five years with no , and it was acquired at the beginning of 2015. What is the amount of research and development costs that should be expensed in 2015 under these conditions? Assume that depreciation on all equipment is computed on a straight-line basis.
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