During 2014 Orr Company incurred the following costs Research and
During 2014, Orr Company incurred the following costs:
Research and development services performed by Key Corporation for Orr . $150,000
Design, construction, and testing of preproduction prototypes and models ... 200,000
Testing in search for new products or process alternatives ......... 175,000

Required:
How much research and development expense should Orr report in 2014?

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