In 2018, 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 2018 expenditures were included in the R&D expense account: Salaries and wages for:
Lab research 490,000
Design and construction of preproduction prototype 350,000
Quality control during commercial production 39,000
Materials and supplies consumed for:
Lab research 79,000
Construction of preproduction prototype 49,000
Purchase of equipment 790,000
Patent filing and legal fees for completed project 59,000
Payments to others for research 215,000
Total $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
Prepare journal entries, reclassifying amounts in R&D expense, to reflect the appropriate treatment of the expenditures.