Richard Co. incurred research and development costs in 2011 as follows:
Equipment acquired for use in various research and development projects ...............................$500,000
Depreciation on the above equipment ..................67,500
Materials used .......................................100,000
Compensation costs of personnel ......................250,000
Outside consulting fees ..............................75,000
Indirect costs appropriately allocated ...............125,000
The total research and development costs charged in Richard's 2011 income statement should be ??