Sunland Belting Corporation, which uses straight-line amortization and depreciation, incurred the following costs in 2026 in connection with its research and development activities:

Construction of an R&D facility with a useful life of 10 years (no salvage) $2,627,000
Acquisition of a patent with a 3-year remaining useful life to be used on the current research project only $190,500
Advertising expense to introduce a newly patented product $212,000
Engineering costs incurred to create prototype $551,500
Materials to be used on current and future research projects $23,000
Supplies used $10,500

What amount should Sunland Belting Corporation report as research & development expense in 2026?

A. 3,432,500
B. $3,402,500
C. $993,700
D. $1,015,200