Sheridan Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years (uses straight-line depreciation) Materials consumed in R&D projects Consulting fees paid to outsiders for R&D projects Personnel costs of persons involved in R&D projects Indirect costs reasonably allocable to R&D projects Materials purchased for future R&D projects $288,500 56,700 127,000 122,000 46,700 33,700 Compute the amount to be reported as research and development expense by Sheridan on its current year income statement. Assume equipment is purchased at the beginning of the year Total to be expensed for research and Development