Wildhorse Co. incurred the following costs during 2018:

Significant modification to the formulation of a chemical product$169000Trouble-shooting in connection with breakdowns during commercialproduction159000Cost of exploration of new formulas209000Seasonal or other periodic design changes to existing products194000Laboratory research aimed at discovery of new technology364000

In its income statement for the year ended December 31, 2018, Wildhorse should report research and development expense of

$936000.

$901000.

$1095000.

$742000.