Question - ABC Company incurred the following costs during the year ended December 31, 2015:
Laboratory research aimed at discovery of new knowledge $230,000
Costs of testing prototype and design modifications $75,000
Quality control during commercial production, including routine testing of products $270,000
Construction of research facilities having an estimated useful life of 6 years but no alternative future use $360,000
What is the total amount to be classified and expensed as research and development in 2015? Be sure to display your calculations in detail.