Crane Corporation, which uses straight-line depreciation and amortization, incurred the following costs in 2026:

Acquisition of R&D equipment with a useful life of 4 years in R&D projects (no salvage) $560500

Cost of making minor modifications to an existing product $41000

Advertising expense to introduce a new product $387500

Engineering costs incurred to advance a product to full production stage $495000

What amount should Crane report as research & development expense in 2026?

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