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Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor:
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| Salaries | $ | 320,000 | |
| Depreciation on R&D facilities and equipment | | 175,000 | |
| Utilities and other direct costs incurred for the R&D facilities | | 76,000 | |
| Patent filing and related legal costs | | 32,000 | |
| Payment to another company for performing a portion of the development work | | 170,000 | |
| Costs of adapting the new monitor for the specific needs of a customer | | 90,000 | |
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What amount should Maxtor report as research and development expense in its income statement?
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