Frye Company incurred R&D costs in 2019 as follows:
Equipment acquired for use in multiple R&D projects ..........$1,000,000
Depreciation on the equipment ...................................................150,000
Materials used ................................................................................200,000
Wages and salaries of R&D personnel .........................................500,000
Outside consulting fees .................................................................100,000
Appropriately allocated indirect costs ........................................250,000
The total R&D expenses reported in Frye’s 2019 income statement should be:
a. $650,000
b. $900,000
c. $1,200,000
d. $1,800,000