Write an 300-400 words accounting essay and prepare the journal entry as the file required.

LONG TERM ASSETSINVESTMENTS AND INTANGIBLESChapter 10 Accounting for Research and Development (R&D) Costs Furyk Co. is in the process of developing a revolutionary new product. A new division of the company was formed to develop, manufacture, and market this new product. As of year-end (December 31, 2014), the new product has not been manufactured for resale. However, a prototype unit was built and is in operation. Throughout 2014, the new division incurred certain costs. These costs include design, $80,000, and engineering, $150,000, studies, prototype manufacturing process design engineering costs, $320,000, administrative expenses (including salaries of administrative personnel), $250,000, and market research costs, $125,000. In addition, approximately $2,000,000 in equipment (with an estimated useful life of 10 years) was purchased for use in developing and manufacturing the new product. Approximately $500,000 of this equipment was built specifically for the design development of the new product. The remaining $1,500,000 of equipment was used to manufacture the preproduction prototype and will be used to manufacture the new product once it is in commercial production. 1. Prepare an essay in good form discussing items (a) through (c). a. How are \"research\" and \"development\" defined in the FASB ASC? Cite the source(s). b. What are the practical and conceptual reasons for the conclusion originally reached by the Financial Accounting Standards Board in SFAS No. 2 on accounting and reporting practices for research and development costs. c. In accordance with GAAP, how should the various costs for Furyk described above be recorded on the financial statements for the year ended December 31, 2014? You can 2. reference your General Journal JE numbers to support your discussion. Prepare a General Journal that presents the Journal Entries in good form for recording the transactions listed above. Even though Furyk Co. actually incurred and accumulated costs during the year, 2014, post an entry as the annual total effect for each item. Assume the chart of accounts recognizes the accounting \"natural\" classes for costs Appropriated for Treatment as Expense and the related Construction in Progress Appropriation tracking the Capital costs which will be depreciated or amortized, as appropriate. Since the equipment has apparently been placed in service, i.e., already used, then also close any CIP items to PP&E or intangibles, as needed