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E12-17B (L05) (Accounting for R&D Costs) Tettleton Company incurred the following costs during the current year in connection with its research and development activities. Instructions
E12-17B (L05) (Accounting for R&D Costs) Tettleton Company incurred the following costs during the current year in connection with its research and development activities.
Instructions
Compute the amount to be reported as research and development expense by Tettleton on its income statement for the current year. Assume equipment is purchased at the beginning of the year.
Cost of equipment acquired that will have alternative uses in future research and development projects over the next 5 years (uses straight-line depreciation) $300,000 Materials consumed in research and development projects 65,000 123,000 315,000 44,000 72,000 Consulting fees paid to outsiders for research and Personnel costs of persons involved in research and Indirect costs reasonably allocable to research and development Materials purchased for future research and development development projects development projects projects projectsStep by Step Solution
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