Problem 3 Amity Company incurred the research and development costs during 2022 as shown below. The equipment has a five-year life, with a $10,000 residual value, and will be used for a number of other research projects in the future. Requirements: A. Calculate the amount of research and development expense that Amity should report in its 2022 income statement. B. What should be done with the other costs. C. Create a journal entry to correctly account for all of the expenditures-assume cash was paid for all. Salaries and Wages for R&D projects Materials used in R&D projects Purchase of equipment An allocated portion of Amity's indirect expenses Patent filing fee & related legal fees Legal fees to defend the above Patent Salaries, wages, and supplies for R&D work performed for another company under a contract Total $ 450,000 98,000 760,000 120,000 155,000 45,000 188.000 1,816,000 A&B R&D and Other Costs C Journal Entry