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Problem 1 0 - 1 1 ( Static ) Research and development [ LO 1 0 - 8 ] In 2 0 2 4 ,

Problem 10-11(Static) Research and development [LO10-8]
In 2024, 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 2024 expenditures were included in the R&D expense account:
Salaries and wages for:
Lab research $ 300,000
Design and construction of preproduction prototype 160,000
Quality control during commercial production 20,000
Materials and supplies consumed for:
Lab research 60,000
Construction of preproduction prototype 30,000
Purchase of equipment 600,000
Patent filing and legal fees for completed project 40,000
Payments to others for research 120,000
Total $ 1,330,000
A total of $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.
1. Record depreciation on equipment used in R&D project
debit: research and development expense
credit accumulated depreciation

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