Richard Co. incurred research and development costs in 2011 as follows: Equipment acquired for use in various research and development projects $500,000 Depreciation on the above equipment $67,500 Materials used $100,000 Compensation costs of personnel $250,000 Outside consulting fees $75,000 Indirect costs appropriately allocated $125,000 The total research and development costs in Richard's 2011 income statement should be: A. $425,000 B. $542,500 C. $617,500 D. $925,000 I think the answer is C. ($617,500) but I am totally unsure. Please help