Question 14 [8 points) In 2015, Frontier Technology Company modified as model 22 ale to incorporate a new communication device. The company made the following expenditur Basic research to develop the technology $4.000.000 Engineering design work 670,000 Development of a prototype device 400.000 Acquisition of equipment 50.000 Testing and modification of the prototype 100,000 Legal and other fees for patient application on the new communication system 50,000 Legal fees for success defence of the new patent 20.000 Total $5,290,000 The equipment will be used on this and other research projects Depreciation on the equipment for 2015 $10,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitale all of the above cost of the potent Management contends that the device represents an improvement of the existing communication system of the satellite and therefore, should be capitalized Prepare correcting entries that reflect the appropriate treatment of the expenditures. Assume development cost meets the arteria to be capitalized Date the entries December 31 Estern appropriate description when entering the transactions in the joumal Dates must be entered in the format ddimme January 15 would be 150an). Please make sure your finalwers are al 2 decimal places