E 12-9 Research and Development Cost

In 2016, Lalli Corporation incurred R&D costs as follow:

Materials used from inventory 100,000

Personnel in R&D lab 100,000

Allocation of the cost of utilities and maintenance

costs of the R&D facility 50,000

These costs relate to a product that will be marked in 2017. The company estimates tht these costs will be recouped by December 31, 2017.

Required:

1. What is the amount of R&D cost expensed in 2016?

2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?