E12-17B (L05) (Accounting for R&D Costs) Tettleton Company incurred the following costs during the current year in con nection with its research and development activities 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 65,000 23,000 15,000 44,000 72,000 Materials consumed in research and development projects Consulting fees paid to outsiders for research and development projects l costs of persons involved in research and Indirect costs reasonably allocable to research and development projects Materials purchased for future research and development projects 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