Cressman Company incurred R&D costs for various projects in 2019 as follows:

Materials used for research	$ 230,000
Materials used for development	160,000
Equipment acquired that will have alternative uses in future research projects for 4 years	1,840,000
Personnel costs of employees involved in research	600,000
Personnel costs of employees involved in development	400,000
Consulting fees paid to outsiders for research	20,000
Consulting fees paid to outsiders for development	100,000
Indirect costs reasonably allocable for research	130,000
Indirect costs reasonably allocable for development	70,000

Required:

1. What is the amount of Cressman's R&D expenses for 2019 if it uses U.S. GAAP?

CRESSMAN COMPANY
2019 Expense Calculations
U.S. GAAP
Materials used in R&D projects	$fill in the blank bfd2c30dbfec04e_1
Depreciation expense on equipment (straight-line)	fill in the blank bfd2c30dbfec04e_2
Personnel costs	fill in the blank bfd2c30dbfec04e_3
Consulting fees	fill in the blank bfd2c30dbfec04e_4
Indirect costs	fill in the blank bfd2c30dbfec04e_5
	$fill in the blank bfd2c30dbfec04e_6

2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits.

CRESSMAN COMPANY
2019 Expense Calculations
IFRS
Materials used in research projects	$fill in the blank 624710fa4fc3fb6_1
Depreciation expense on equipment (straight-line)	fill in the blank 624710fa4fc3fb6_2
Personnel costs	fill in the blank 624710fa4fc3fb6_3
Consulting fees	fill in the blank 624710fa4fc3fb6_4
Indirect costs	fill in the blank 624710fa4fc3fb6_5
	$fill in the blank 624710fa4fc3fb6_6
Materials used in development projects	$fill in the blank 624710fa4fc3fb6_7
Personnel costs	fill in the blank 624710fa4fc3fb6_8
Consulting fees	fill in the blank 624710fa4fc3fb6_9
Indirect costs	fill in the blank 624710fa4fc3fb6_10
	$fill in the blank 624710fa4fc3fb6_11