Cost of self-developed product. New Hampshire Wood Stove Company incurs various costs in developing a new, cleaner-burning wood stove. Indicate the accounting treatment of each of the following expenditures.

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(1) Salaries of company engineers to design wood stove (2) Cost of prototype of wood stove built by external contractor .. (3) Cost of supplies and salaries of personnel to test prototype (4) Fees paid to Environmental Protection Agency to test emissions of new wood stove... (5) Legal fees incurred to register and establish a patent on the wood stove. . . . (6) Cost of castings, or molds, for metal parts of new wood stove.... $40,000 3,000 6,500 1,500 2,500 16,000