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) Materials consumed in R&D projects Consulting fees paid to outsiders for R&D projects Personnel costs of persons involved in R&D projects Indirect costs reasonably allocable to R&D projects Materials purchased for future R&D projects $282,500 55,500 115,000 125,000 45,500 32,500 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 $