Delaware Company incurred the following research and development costs during 2021: Salaries and wages for lab research Materials used in R&D projects Purchase of equipment Fees paid to third parties for R&D projects Patent filing and legal costs for a developed product Salaries, wages, and supplies for R&D work performed for another company under a contract Total $ 480,000 280,000 980,000 400,000 73,000 430,000 $2,643,000 The equipment has a seven-year life and will be used for a number of research projects. Depreciation for 2021 is $200,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2021 income statement. Research and development expense