Exercise 12-17 Pharoah 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 straight-line depreciation) $288,000 Materials consumed in R&D projects 56,600 Consulting fees paid to outsiders for R&D projects 126,000 Personnel costs of persons involved in R&D projects 135,500 Indirect costs reasonably allocable to R&D projects 46,600 Materials purchased for future R&D projects 33,600 Compute the amount to be reported as research and development expense by Pharoah on its current year income statement. Assume equipment is purchased at the beginning of the year. Total to be expensed for research and Development $