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 The equipment will be used on this and other research projects. Depreciation on the equipment for 2024 is $19,000. During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the abc costs of the patent. Management contends that the device simply represents an improvement of the existing communication sy the satellite and, therefore, should be capitalized. Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 Transaction 1 2 3 X Answer is not complete. General Journal Research and development expense Patent Equipment Patent Research and development expense Accumulated depreciation - equipment $ 2,450,000 770,000 390,000 69,000 290,000 49,000 29,000 $4,047,000 Debit 4,047,000 78,000 Credit 4,047,000 X

The equipment will be used on this and other research projects. Depreciation on the equipment for 2024 is $19,000. During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the a costs of the patent. Management contends that the device simply represents an improvement of the existing communication the satellite and, therefore, should be capitalized. Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field