(Accounting for R & D Costs) Thomas More Company incurred the following costs during 2003 in connection with its research and development activities.

Instructions Compute the amount to be reported as research and development expense by More on its income statement for 2003. Assume equipment is purchased at beginning of year.

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Cost of equipment acquired that will have alternative uses in future research and development projects over the next 5 years (uses straight-line depreciation) Materials consumed in research and development projects Consulting fees paid to outsiders for research and $280,000 59,000 development projects 100,000 Personnel costs of persons involved in research and development projects 128,000 Indirect costs reasonably allocable to research and development projects 50,000 Materials purchased for future research and development projects 34,000