In 2011, 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 2011 expenditures were included in the R&D expense account:
Salaries and wages for:

$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 theexpenditures.

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Salaries and wages for Lab research Design and construction of preproduction prototype 1,60,000 Quality control during commercial production Materials and supplies consumed for Lab research Construction of preproduction prototype Purchase of equipment Patent filing and legal fees for completed project 40,000 Payments to others for research Tota $ 3,00,000 20,000 60,000 30,000 6,00,000 1,20,000 S13,30,000