Delaware Company incurred the following research and development costs during 2021:

Salaries and wages for lab research	$	500,000
Materials used in R&D projects		300,000
Purchase of equipment		1,000,000
Fees paid to third parties for R&D projects		420,000
Patent filing and legal costs for a developed product		75,000
Salaries, wages, and supplies for R&D work performed for another company under a contract		450,000
Total	$	2,745,000

The equipment has a eight-year life and will be used for a number of research projects. Depreciation for 2021 is $220,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2021 income statement.