In 2021, Starsearch Corporation began work on three research and development projects. One of the projects was completed and commercial production of the developed product began in December. The company?s fiscal yearend is December 31. All of the following 2021 expenditures were included in the R&D expense account:

$200,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment will be abandoned. The remaining $400,000 in equipment will be used on future R&D projects. The useful life of equipment is five years. Assume that all of the equipment was acquired at the beginning of the year.

Required:Prepare journal entries, reclassifying amounts in R&D expense, to reflect the appropriate treatment of the expenditures.

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Salaries and wages for: $ 300,000 Lab research Design and construction of preproduction prototype Quality control during commercial production Materials and supplies consumed for: 160,000 20,000 Lab research 60,000 Construction of preproduction prototype 30,000 600,000 Purchase of equipment Patent filing and legal fees for completed project Payments to others for research 40,000 120,000 $1,330,000 Total