Hall Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $950,000 Equipment acquired that will have alternate future uses in future research and development projects 3,000,000 Depreciation for 2021 on above equipment 500,000 Personnel costs of persons involved in research and development projects 750,000 Consulting fees paid to outsiders for research and development projects 300,000 Indirect costs reasonably allocable to research and development projects 225,000 $5,725,000 The amount of research and development costs charged to Hall's 2021 income statement should be:
Hall Co. incurred research and development costs in 2021 as follows:
Materials used in research and development projects $950,000
Equipment acquired that will have alternate future uses in future research and development projects 3,000,000
Personnel costs of persons involved in research and development projects 750,000
Consulting fees paid to outsiders for research and development projects 300,000
Indirect costs reasonably allocable to research and development projects 225,000
$5,725,000
The amount of research and development costs charged to Hall's 2021 income statement should be:
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