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

Salaries and wages for lab research	$	430,000
Materials used in R&D projects		230,000
Purchase of equipment		930,000
Fees paid to third parties for R&D projects		350,000
Patent filing and legal costs for a developed product		68,000
Salaries, wages, and supplies for R&D work performed for another company under a contract		380,000
Total	$	2,388,000

The equipment has a eight-year life and will be used for a number of research projects. Depreciation for 2018 is $150,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2018 income statement.