Aylmer Ltd$.$ is a public company that prepares its consolidated financial statements in accordance with IFRS. Its net income in Year $2$ was $$200,000,$ and shareholders' equity at December $31,$ Year $2,$ was $$1,800,000.$

Mr$.$ Lombardi, the major shareholder, has made an offer to buy out the other shareholders, delist the company, and take it private. Thereafter, the company will report under ASPE. You have identified the following area in which Aylmer's accounting principles differ between IFRS and ASPE.

Aylmer incurred research and development costs of $$600,000$ in Year $1.25\%$ of these costs were related to development activities that met the criteria for capitalization as an intangible asset. The newly developed product was brought to market in January, Year $2$ and is expected to generate sales revenue for $15$ years.

How much research and development should Aylmer report on its balance sheet$$at December $31,$ Year $2,$ using IFRS?