Salvia Company incurred the following costs during 20X7 in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future research and development projects over the next 5 years (uses 175% declining balance depreciation) Materials consumed in research and development projects Consulting fees paid to outsiders for research and development projects S 280,000 59,000 100,000 98,000 50,000 34,000 Personnel costs of persons involved in research and development projects Indirect costs reasonably allocable to research and development projects Materials purchased for future research and development projects REQUIRED: Compute the amount to be reported as research and development expense by Salvia on its income statement for 20X7. Assume the equipment was purchased at the beginning of the year