2. Radiant Co. incurred the following costs during 2021:

Significant modification to the formulation of a chemical product P160,000

Trouble-shooting in connection with breakdowns during commercial

production 150,000

Cost of exploration of new formulas 200,000

Seasonal or other periodic design changes to existing products 185,000

Laboratory research aimed at discovery of new technology 275,000

In its income statement for the year ended December 31, 2021, Radiant should report research and development expense of?

P635,000

P820,000

P970,000

P785,000