Elsa Clothing Company manufactures professional clothing. To keep costs low while still producing quality clothes, Elsa conducts R&D projects. During 2016, Elsa researchers used $35,000 of cotton and $27,000 of wool from its inventory in research projects. Elsa paid researchers $30,000 cash in wages. Elsa purchased two machines on Jan 1, 2016: 1) a special weaving machine for $60,000 cash that is not suitable for use in production or other research projects and 2) a generic weaving machine for $80,000 that will have use in future research projects. Both machines are estimated to have 10 year lives and no residual values (the firm uses straight-line depreciation for all long-lived tangible assets). What is the total amount of R&D expense for 2016? 130,000 106,000 232,000 100,000 Correct Answer 160,000