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2. The following costs were incurred by Mark Corporation during the current year: Legal fees paid to attorneys in connection with a patent application related
2. The following costs were incurred by Mark Corporation during the current year: Legal fees paid to attorneys in connection with a patent application related to a ne invention developed by the company's laboratory personnel: $40,000 Salaries of personnel involved in searching for applications of new research findings: $150,000. Cost of machinery acquired on January 1, 2014: 5355,000. The machinery will be used in a urrent research and development project, as well as several other R&D projects over the next eight years, after which the machine is expected to be sold for $15,000. Mark Corporation uses straight-line depreciation Costs of design, construction, and testing of preproduction prototypes of potential new product lines for the company: $70,000. Cost of developing a valuable new product that was successfully patented: $100,000 Cost of marketing research to promote the new product: $60,000. Required: Calculate the total research and development expense that should appear in Mark's current year income statement. For any of the above items you exclude from the current year expense amount, indicate the proper accounting treatment
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