Research and Development

Frye Company incurred R&D costs in 2016 as follows:

Equipment acquired for use in multiple
R&D projects	$1,000,000
Depreciation on the equipment	150,000
Materials used	200,000
Wages and salaries of R&D personnel	500,000
Outside consulting fees	100,000
Appropriately allocated indirect costs	250,000

The total R&D costs reported in Frye's 2016 income statement should be: