Chapter 11, Problem 11.26E

Research and Development Activities. During the current year, Carlson Industries, Inc. conducted significant research activities related to the development of a new computer chip. Carlson had the following costs:

Description	Amount
Diagnostic equipment (5 year life, $10,000 residual value, S-L method, purchased January 1)	$ 500,000
Salaries of laboratory technicians	325,000
Testing materials used in experimentation	137,500
Supplies used in the testing process	23,500
Salary for engineer in the design phase of production	87,000
Depreciation expense on research facilities	8,000
Total cost of research activities	$1,081,000

Prepare all journal entries required to record Carlson’s R&D activities for the current year.