Crane Co$.$ incurred the following costs during $2026$:

Significant modification to the formulation of a chemical product $$159000$

Trouble$-$shooting in connection with breakdowns during commercial

production

$149000$

Cost of exploration of new formulas

$199000$

Seasonal or other periodic design changes to existing products

$184000$

Laboratory research aimed at discovery of new technology

$354000$

In its income statement for the year ended December $31,2026,$ Crane should report research and development expense of $$

$$712000.$

$$89600.$

$$1045000.$

$$861000.$