Wildhorse Company incurred the following costs during the current year in connection with its research and development activities.

Cost of equipment acquired that will have alternativeuses in future R&D projects over the next 5 years(uses straight-line depreciation) $290,500

Materials consumed in R&D projects 57,100

Consulting fees paid to outsiders for R&D projects 131,000

Personnel costs of persons involved in R&D projects 126,000

Indirect costs reasonably allocable to R&D projects 47,100

Materials purchased for future R&D projects 34,100

Compute the amount to be reported as research and development expense by Wildhorse on its current year income statement. Assume equipment is purchased at the beginning of the year.