Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor: Salaries $ 420,000 Depreciation on R&D facilities and equipment 225,000 Utilities and other direct costs incurred for the R&D facilities 86,000 Patent filing and related legal costs 42,000 Payment to another company for performing a portion of the development work 220,000 Costs of adapting the new monitor for the specific needs of a customer 100,000 What amount should Maxtor report as research and development expense in its income statement?