Answer:
The amount of loss before taxes=$1,000,000 after accounting for research and development costs.
Step-by-step explanation:
To calculate the final net income or the loss before taxes, we express this as;
Final net income/loss=Initial net income-Research and development costs
where;
Final net income/loss is the net income after accounting for research and development costs. This is unknown at the moment and needs to be calculated using the expression above
Initial net income is the net income before accounting for the research and development costs=$2,540,000
Research and development costs are expenses incurred and should be subtracted from the initial net income=$3,540,000
Replacing the values in the expression;
Final net income/loss=(2,540,000-3,540,000)=-$1,000,000
The amount of loss before taxes=$1,000,000 after accounting for research and development costs.