Dawes Corp. purchased the following items on January 1:

• Testing equipment that will be used for multiple R&D projects for $325,000. The company expects the equipment can be sold for $25,000 at the end of life.
• Testing equipment that will be used for one R&D project for $65,000. The equipment has no salvage value.

Both equipment have an estimated four-year life. The company usually depreciates testing equipment using the straight-line method. How much total R&D expense does Dawes recognize on the income statement under U.S. GAAP during the current year?

Hint: I know that the answer is 140000, I just want to know the reason why.