QUESTION 3 Data related to the inventories of Costco Medical Supply are presented below: Rehab Surgical Equipment $ 260 Surgical Supplies $ 100 Rehab Equipment $ 340 250 25 Supplies $ 165 Selling price Cost Costs to sell 170 90 162 30 15 10 In applying the lower of cost or net realizable value rule, the inventory of surgical supplies would be valued at: $90. $85. $75. QUESTIONS A company incurred the following costs related to research and development (R&D) for the current year, R&D salaries R&D supplies consumed Equipment used in R&D projects Payment for services to others for R&D projects $ 120,000 240,000 600,000 160,000 The equipment will be used in other projects. Depreciation in the current year is $70,000. For what amount should the company Leport research and development expense? $590,000. $670,000. $430,000 $1,200,000