Caerus Pharmaceuticals incurred the following costs in year 1 related to a new cancer drug:

Research for a new formula -wages $ 2,000,000

Research for a new formula lab costs 3,475,000

Research for a new formula equipment 1,000,000

Development of a new formula wages 2,800,000

Development of a new formula production tests 1,800,000

Legal and filing fees for a patent for the new formula 100,000

The equipment was used only for research purposes in year 1. The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new drug was patented before the end of year 1 fiscal year.

Calculate the amount of research and development expense Caerus should report in its year 1 income statement related to this project under US GAAP.