Hall Co. incurred research and development costs in 2013 as follows:
Materials used in research and development projects $450,000
Equipment acquired that will have alternate future uses in future 3,000,000
Research and development projects
Depreciation for 2013 on above equipment 500,000
Personal costs of persons involved in research and development project 750,000
Consulting fees paid to outsiders for research and development project 300,000
Indirect costs reasonably allocable to research and development project 225,000
Total $5,225,000
The amount of research and development costs charged to Hall's 2013 income statement should be:
A) $2,225,000
B) $2,000,000
C) $4,700,000
D) $1,700,000