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:

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: $400,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment will be abandoned. The remaining $300,000 in equipment will be used on future R\&D projects. Assume that all of the equipment was acquired at the beginning of the year. The equipment is depreciated over a 5 year useful life on a straight-line basis. Partial-year depreciation is calculated using the half-year accounting convention. Required: Prepare journal entries, reclassifying amounts in R\&D expense, to reflect the appropriate treatment of the expenditures