Ivanhoe Company incurred the following costs during the current year in connection with its research and development activities.
Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years $287,000
Materials consumed in R&D projects 56,400
Consulting fees paid to outsiders for RRD projects 124,000
Personnel costs of persons involved in R&D projects 139,000
Indirect costs reasonably allocable to R&D projects 46,400
Materials purchased for future R&D projects 33,400
Compute the amount to be reported as research and development expense by Ivanhoe on its current year income statement. Assume equipment is purchased at the beginning of the year.

The amount to be reported as research and development expense by Ivanhoe on its current year income statement is $500,800 ($287,000 + $56,400 + $124,000 + $139,000 + $46,400). The cost of materials purchased for future R&D projects (i.e. $33,400) is not included in the research and development expense since it is a prepaid expense and will be recognized as an expense in future years.

An income statement displays the revenues, costs, and profitability of a business over time. It is also sometimes referred to as an earnings statement or a profit-and-loss (P&L) statement. It displays your sales revenue for goods and services. expenses for running your firm and generating money.

To know more about accounting here

https://brainly.com/question/14527410

#SPJ4