n 2013, 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 2013 expenditures were included in the R&D expense account: Salaries and wages for: Lab research $ 330,000 Design and construction of preproduction prototype 190,000 Quality control during commercial production 23,000 Materials and supplies consumed for: Lab research 63,000 Construction of preproduction prototype 33,000 Purchase of equipment 630,000 Patent filing and legal fees for completed project 43,000 Payments to others for research 135,000 Total $ 1,447,000 $215,000 of equipment was purchased solely for use in one of the projects. After the project is completed, the equipment will be abandoned. The remaining $415,000 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.