Solution-Starsearch corporation began work on three research

Starsearch corporation began work on three research

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Reference no: EM13999212

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:

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$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 the expenditures.

Reference no: EM13999212

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Starsearch corporation began work on three research

Reference no: EM13999212

Reference no: EM13999212

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