Delaware Company incurred the following research and development costs during 2016:

Salaries and wages for lab research	$	490,000
Materials used in R&D projects		290,000
Purchase of equipment		990,000
Fees paid to outsiders for R&D projects		410,000
Patent filing and legal costs for a developed product		74,000
Salaries, wages, and supplies for R&D work performed for another company under a contract		440,000
Total	$	2,694,000

The equipment has a six -year life and will be used for a number of research projects. Depreciation for 2016 is $210,000.

Required:

Calculate the amount of research and development expense that Delaware should report in its 2016 income statement.

Research and Development Expense = $?