During 2020, Mowgli Company incurred the following costs: R&D services performed by Elijah Company for Mowgli P1,500,00 R&D costs incurred by Mowgli Company for Elisha Company and reimbursable by...

During 2020, Mowgli Company incurred the following costs:


R&D services performed by Elijah Company for Mowgli             P1,500,00
R&D costs incurred by Mowgli Company for Elisha
  Company and reimbursable by Elisha Company                          2,400,000
Cost incurred in the conceptual formulation of possible
process alternative                                                                          2,000,000
Building cost that will be used as R & D facility,
acquired on January 1, 2013, with estimated useful
life of 10 years                                                                                 3,000,000
Design of tools, jigs and moulds                                                     1,300,000
Cost of testing prototype and design modifications                          900,000


In its 2020 profit and loss, what should Mowgli Company report as research and development expense?