WPP 7 - Chapter 10 i Saved 1 10 points 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 eBook Legal and other fees for patent application on the new communication system Legal fees for successful defense of the new patent Total $2,100,000 700,000 320,000 62,000 220,000 42,000 22,000 $3,466,000 Hint Print References The equipment will be used on this and other research projects. Depreciation on the equipment for 2021 is $12,000. 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 2 3 Record the correcting entry for R&D costs. Note: Enter debits before credits. > Journal entry worksheet < 1 2 3 Record the correcting entry for the equipment, if any. View transaction list Journal entry worksheet 1 2 3 Record the correcting entry to record depreciation on equipment used in R&D projects. Note: Enter debits before credits