Maribeth Company made the following expenditures relating to Product Zee:

Legal costs to file a patent on Product Zee. Production of the finished

product would not have been undertaken without the patent 100,000

Special equipment to be used solely for development of Product Zee. The

equipment has no other use and has an estimated useful life of four years 600,000

Labor and material costs incurred in producing a prototype model 2,000,000

Cost of testing the prototype 800,000

What total amount of costs should be expensed when incurred?

A. 2,800,000

B. 2,950,000

C. 3,400,000

D. 3,500,000