Research and Development Costs Cressman Company incurred research and development costs in 2007 as follows:
|
Materials used in research and development projects |
$400,000 |
|
Equipment acquired that will have alternate future uses in future research and development projects for four years |
2,000,000 |
|
Personnel costs of employees involved in research and development projects |
1,000,000 |
|
Consulting fees paid to outsiders for research and development projects |
100,000 |
|
Indirect costs reasonably allocable to research and development projects |
200,000 |
Required
What is the amount of research and development costs charged to Cressman’s 2007 income?