Cressman Company incurred research and development costs in 2007 as follows:

Materials used in research and development projects ............ $ 400,000

Equipment acquired that will have alternate future uses in future research and development projects for four years ....................... 2,000,000

Personnel costs of employees involved in research and development projects . 1,000,000

Consulting fees paid to outsiders for research and development projects .... 100,000

Indirect costs reasonably allocable to research and development projects ...... 200,000

Required

What is the amount of research and development costs charged to Cressman’s 2007 income?