Question
Delaware Company incurred the following research and development costs during 2016: Salaries and wages for lab research $ 510,000 Materials used in R&D projects 310,000
Delaware Company incurred the following research and development costs during 2016: Salaries and wages for lab research $ 510,000 Materials used in R&D projects 310,000 Purchase of equipment 1,010,000 Fees paid to outsiders for R&D projects 430,000 Patent filing and legal costs for a developed product 76,000 Salaries, wages, and supplies for R&D work performed for another company under a contract 460,000 Total $ 2,796,000 The equipment has a seven -year life and will be used for a number of research projects. Depreciation for 2016 is $230,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2016 income statement.
Research and development expenses $
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