Question - Ball Co. incurred research and development costs in 2004 as follows:
Material used in research and development projects $540,000
Equipment acquired that will have alternate future uses in future research and development projects $4,600,000
Depreciation for 2004 on above equipment $360,000
Personnel costs of persons involved in research and development projects $660,000
Consulting fees paid to outsiders for research and development projects 180,000
Indirect costs reasonably allocable to research and development projects 270,000
Total: $6,610,000
The amount of research and development costs charged ago Ball's 2004 income statement should be
a) 1,560,000
b) 1,740,000
c) 1,010,000
d) none of the above.