Tettleton Company incurred the following costs during the current year in connection with its research and development activities.
Cost of equipment acquired that will have alternative uses in
future research and development projects over the next
5 years (uses straight-line depreciation) ............. $300,000
Materials consumed in research and development projects .... 75,000
Consulting fees paid to outsiders for research and
development projects ..................... 123,000
Personnel costs of persons involved in research and
development projects ..................... 215,000
Indirect costs reasonably allocable to research and
development projects ..................... 48,000
Materials purchased for future research and development
projects ......................... 72,000

Instructions
Compute the amount to be reported as research and development expense by Tettleton on its income statement for the current year. Assume equipment is purchased at the beginning of the year.