Exercise 10-27 (Algo) Research and development [LO10-8]

Delaware Company incurred the following research and development costs during 2024:

Salaries and wages for lab research$ 580,000Materials used in R&D projects380,000Purchase of equipment1,080,000Fees paid to third parties for R&D projects500,000Patent filing and legal costs for a developed product83,000Salaries, wages, and supplies for R&D work performed for another company under a contract530,000Total$ 3,153,000

The equipment has a six-year life and will be used for a number of research projects. Depreciation for 2024 is $300,000.

Required:

Calculate the amount of research and development expense that Delaware should report in its 2024 income statement.