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 fee $75,000 Indirect costs appropriately allocated $125,000 The total research and development costs charged in Richard's 2011 income statment should be a) 425,000 b) 542,500 c)617,500 d)925,000