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 $ 520,000 320,000 1,020,000 440,000 77,000 470,000 $2,847,000 The equipment has a six-year life and will be used for a number of research projects. Depreciation for 2021 is $240,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2021 income statement. Research and development expense