Delaware Company incurred the following research and development costs during 2018:

Salaries and wages for lab research $400,000

Materials used in R&D projects200,000

Purchase of equipment900,000

Fees paid to third parties for R&D projects320,000

Patent filing and legal costs for a developed product65,000

Salaries, wages, and supplies for R&D work performed for another company under a contract350,000

Total $2,235,000

The equipment has a seven-year life and will be used for a number of research projects. Depreciation for 2018 is $120,000.

Required:

Calculate the amount of research and development expense that Delaware should report in its 2018 income statement.