Micro Tech, Inc made the following cash expenditures during 2013 related to the development of a new technology which was patented at the end of year

Materials and supplies used 38000 R&D salaires 120000 Patent Filing fees 3000 Payments to external consultants 50,000 Purchase of R&D equipment 140,000 The Equipment purchased has no future use beyond the current project. 10,000 of the materials and supplies used and 32000 in salaries relate to the construction of prototypes. In its 2013 financial statements micro tech should report research and development expenses of:

The answer is $348000.

Please explain how to calculate this number. Thank you