During the current year ended December 31, Metal, Inc. incurred the following costs:
| Laboratory research aimed at discovery of new knowledge | $ 75,000 | | Design of tools, jigs, molds, and dies involving new technology | 22,000 | | Quality control during commercial production, including routine testing | 35,000 | | Equipment acquired two years ago, having an estimated useful life of five years with no salvage value, used in various R & D projects | 150,000 | | Research and development services performed by Stone Co. for Metal, Inc. | 23,000 | | Research and development services performed by Metal, Inc. for Clay Co. | 32,000 |
What amount of research and development expenses should Metal report in its current-year
statement?
A. $120,000
B. $150,000
C. $187,000
D. $217,000
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