Exercise 12-17

Oriole Company incurred the following costs during the current year in connection with its research and development activities.

Exercise 12-12!r Oriole Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years {uses Weight-line depreciation) $282,000 Materials consumed in RED projects 55,400 Consulting fees paid to outsiders for REID projects 114,000 Personnel costs of persons involved in RED projects 128,000 Indirect costs reasonany allocable to MD projects 45,400 Materials purchased for future RED projects 32,400 Compute the amount to be reported as research and development expense by Oriole on its current year inoome statement. Assume equipment is purchased at the beginning of the year. Total to be expensed for research and Development $|:|