Exercise 10-27 (Algo) Research and development [LO10-8] Delaware Company incurred the following research and development costs during 2021: 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 Total $ 540,000 340,000 1,040,000 460,000 79,000 490,000 $2,949,000 The equipment has a eight-year life and will be used for a number of research projects. Depreciation for 2021 is $260,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2021 income statement. Research and development expense