In 2016, 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 year-end is December 31. All of the following 2016 expenditures were included in the R&D expense account:

Salaries and wages for:Lab research$490,000Design and construction of preproduction prototype350,000Quality control during commercial production39,000Materials and supplies consumed for:Lab research79,000Construction of preproduction prototype49,000Purchase of equipment790,000Patent filing and legal fees for completed project59,000Payments to others for research215,000Total$2,071,000

$295,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment will be abandoned. The remaining $495,000 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.

Record entry to capitalize the cost of equipment to be used on future projects incorrectly charged to R&D expense.