Ward Company incurred research and devel- opment costs in 1985 as follows: Equipment acquired for use in various research and develop- ment projects $975,000 Depreciation on the above equi pment Materials used Compensation costs of per- 135,000 200,000 sonnel Outside consulting fees Indirect costs appropriately 500,000 150,000 al located The total research and development costs charged in Ward's 1985 income statement should be 250,000 a. 850,000 b. $1,085,000 c $1,235,000 $1,825,000