In 2020, Peterson Corporation Incurred Research Costs as Follows: Materials $\$ 60,000$

Multiple Choice

In 2020, Peterson Corporation incurred research costs as follows: Materials and supplies.......................................................... $\$ 60,000$
Personnel .....................................................................................65,000

Indirect costsmallocated......................................................... 80,000
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $205,000

These costs relate to a product that Peterson expects to market in 2021. It is estimated that these costs will be recouped by December 31, 2023. How much of these costs could be capitalized in 2020?

A) $ 205,000
B) $ 125,000
C) $ 80,000
D) $ 0