Solivan Corp. incurred the following costs during the current year:

Construction of preproduction prototypes	$180,000
Testing in search of process alternatives	110,000
Design of tools, jigs, molds, and dies
involving new technology	115,000
Engineering follow-through in an early
phase of commercial production	80,000
Seasonal or other periodic changes to
existing products	105,000

In its income statement, Solivan should report research and development expense of

$295,000

$405,000

$375,000

$370,000