Sheridan Co. incurred research and development costs in 2018 as follows:

Materials used in research and development projects$915000Equipment acquired that will have alternate future uses in future research and development projects2650000Depreciation for 2018 on above equipment465000Personnel costs of persons involved in research and development projects715000Consulting fees paid to outsiders for research and development projects265000Indirect costs reasonably allocable to research and development projects190000 $5200000

The amount of research and development costs charged to Sheridan's 2018 income statement should be

$4545000.

$1895000.

$2095000.

$2550000.