Notting Hill Company incurred the following costs for R&D activities:

Material used from inventory ....................................................................$15,000

Equipment purchased (with cash) for R&D with no other use ................85,000

Depreciation on building housing multiple R&D activities .......................10,000

Wages and salaries paid to R&D employees ..............................................38,500

Prepare Notting Hill’s journal entry(ies) to record its R&D.