During 2018, Coco Co. incurred the following costs: Testing in search of process alternatives $830,000 Costs of marketing research for new product $520,000 Modification of the formulation of a process $650,000 R&D services performed by Pepsi Corp. for Lizard Co. $745,000 In coco's 2018 income statement, research and development expense should be:

$2,745,000

$2,095,000

$2,000,000

$1,480,000