1 Record the correcting entry for R& D costs.

2. Record the correcting entry for the patent.

3. Record the correcting entry to record depreciation on equipment used in R&D projects.

In 2021, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Acquisition of equipment Testing and modification of the prototype Legal and other fees for patent application on the new communication system Legal fees for successful defense of the new patent Total $3,000,000 880,000 500,000 80,000 400,000 60,000 40,000 $4,960,000 The equipment will be used on this and other research projects. Depreciation on the equipment for 2021 is $30,000. During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the correcting entry for R&D costs. Note: Enter debits before credits. Transaction General Journal Credit 1 Research and development expense Advertising expense Accumulated depreciation - equipment Debit 3,000,000 880,000 Prey 10 of 10 Next