West coast growers incurs the following costs during the, Finance Basics

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West coast growers incurs the following costs during the

Question: West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.

Salaries for R&D $440,000

Depreciation on R&D facilities and equipment 135,000

Utilities incurred for the R&D facilities 6,000

Patent filing and related legal costs 22,000

Payment to another company for part of the
development work 110,000

What amount should West Coast Growers report as research and development (R&D) expense in its income statement?

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