Delaware Company incurred the following research and development costs during 2018: 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 $ 400,000 200,000 900,000 320,000 65,000 350,000 $ 2, 235,000 Total 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. Research and development expense