Research and Development Costs Cressman Company incurred R&D costs for various projects in 2019 as follows: Materials used for research $ 230,000 Materials used for development 160,000 Equipment acquired that will have alternative uses in future research projects for 4 years 1,840,000 Personnel costs of employees involved in research 600,000 Personnel costs of employees involved in development 300,000 Consulting fees pald to outsiders for research 20,000 Consulting fees paid to outsiders for development 75,000 Indirect costs reasonably allocable for research 130,000 Indirect costs reasonably allocable for development 60,000 Required: 1. What is the amount of Cressman's R&D expenses for 2019 if it uses U.S. GAAP? CRESSMAN COMPANY 2019 Expense Calculations U.S. GAAP Materials used in R&D projects Depreciation expense on equipment (straight-line) Personnel costs Consulting fees Indirect costs Check My Work Chan Personnel costs Consulting fees Indirect costs 2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits CRESSMAN COMPANY 2019 Expense Calculations IFRS Materials used in research projects Depreciation expense on equipotent (straight line) Personnel costs Consulting fees Indirect costs 00000000 Materials used in development projects Personnel costs Consulting fees Indirect costs