Answer:
Research and development expense is $679,000.
Explanation:
Creation of a new type of personal computer monitor is an internally generated intangible asset.
The Costs directly incurred in developing an internally generated intangible asset are all expensed until the intangible asset is technically physiable for operation.
Research and Development costs are thus expensed.
<u>Calculation of Research and Development Cost</u>
Salaries $240,000
Depreciation on R&D facilities and equipment $135,000
Utilities and other direct costs incurred for the R&D facilities $ 68,000
Patent filing and related legal costs $24,000
Payment to another company for development work $130,000
Costs of adapting the new monitor $82,000
Total $679,000
Conclusion :
Research and development expense is $679,000.
