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Problem 21-3 (AICPA Adapted) Ward Company incurred the following research and development costs in the current year Equipment acquired for use in various R and D projects Depreciation on the above Materials used Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated 135,000 200,000 500,000 150,000 250,000 What total amount of research and development costs should be recognized as expense for the current year? a. 850,000 b. 1,085,000 c. 1,235,000 d. 1,825,000 Problem 21-4 (AICPA Adapted) Koral Company incurred the following costs during the current year: Modification to the formulation of a chemical product Trouble shooting in connection with breakdowns 135,000 150,000 170,000 185,000 215,000 during commercial production Design of tools, jigs, molds and dies involving new technology Seasonal or other periodic design changes to existing products Laboratory research aimed at discovery of new technology What total amount should be reported as research and development expense for the current year? a. 520,000 b. 470,000 . 385,000 d. 335,000 445