Richard Co. incurred research and development costs in 2011 as follows: Equipment acquired for use in various research and development projects ...............................$500,000 Depreciation on the above equipment ..................67,500 Materials used .......................................100,000 Compensation costs of personnel ......................250,000 Outside consulting fees ..............................75,000 Indirect costs appropriately allocated ...............125,000 The total research and development costs charged in Richard's 2011 income statement should be