In 2002, Cassie Logan Corporation developed a new product that will be marketed in 2003. In connection with the development of this product, the following costs were incurred in 2002: research and development costs $420,000;

materials and supplies consumed $60,000; and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2005. What is the amount of research and development costs that Cassie Logan should record in 2002 as a charge to expense?