Richard Co. incurred research and development costs in 2021 as follows:

Equipment acquired for use in various research and development projects	P500,000
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 charged in Richard's 2021 income statement should be

Group of answer choices

P542,500.

P425,000.

P617,500.

P925,000.