Hall CoIncurred Research and Development Costs in 2007 as Follows

question 34

Multiple Choice

Hall Co.incurred research and development costs in 2007 as follows: $\begin{array} { l } \text {Materials used in research and development projects }&\$450,000\\ \text { Equipment acquired that will have alternate future uses in future research}&\\ \text { and development projects}&3,000,000\\ \text { Depreciation for 2007 on above equipment}&300,000\\ \text { Personnel costs of persons involved in research and development projects}&750,000\\ \text { Consulting fees paid to outsiders for research and development projects }&150,000\\ \text { Indirect costs reasonably allocable to research and development projects}&225,000\\&\$4,875,000\end{array}$
The amount of research and development costs charged to Hall's 2007 income statement should be

• A)$1,500,000.
• B)$1,650,000.
• C)$1,875,000.
• D)$4,050,000.

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Definitions:

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Hematocrit

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