Martinez Company incurred the following costs during 2012 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) |
|
$330,000 |
| Materials consumed in R&D projects |
|
59,000 |
| Consulting fees paid to outsiders for R&D projects |
|
100,000 |
| Personnel costs of persons involved in R&D projects |
|
128,000 |
| Indirect costs reasonably allocable to R&D projects |
|
50,000 |
| Materials purchased for future R&D projects |
|
34,000 |
Compute the amount to be reported as research and development expense by Martinez on its income statement for 2012. Assume equipment is purchased at the beginning of the year.
| Total to be expensed in 2012 for research and Development |