E12-17B (LO5) (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 $300,000 over the next 5 years (uses straight-line depreciation) development projects development projects projects projects 65,000 123,000 315,000 44,000 72,000 Materials consumed in research and development projects 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 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