Problem:
Delaware Company incurred the following costs that relate to research and development in 2009:
Salaries and wages for lab research $400,000
Materials used in R&D projects 200,000
Construction of prototype used in R&D 900,000
Research & Development assoc w /specific capitalized projects 500,000
Purchase of equipment with alternative uses 200,000
Marketing research to promote a new product 100,000
Calculate the amount of research and development cost Delaware should report in the 2009 financial statement.