Consider the following information from a company's records for 2020 : Materials used in research and development projects $4,500 Equipment acquired that will have altemative future uses in future R\&D projects for five years Personnel costs of employees involved in R&D projects Consulting fees paid to outsiders for R\&D projects Indirect costs reasonably allocable to R&D projects 1,500 5,500 2,800 250 Legal fees associated with registration of a patent resulting from a 2020 R\&D project 2,500 Required: Compute the amount of R\&D costs that should be classified as expenses in determining 2020 net income. $