Jameson Limited Was Involved in a Mining Exploration Business

Jameson Limited was involved in a mining exploration business. It commenced a project to design more efficient opal detecting equipment. The following expenditures occurred during the financial year ended 30 June 2022: researcher's salary $50 000; research consumables $30 000; re-development of the detecting equipment $40 000; final adjustments to the detecting equipment $12 500. The amount to be capitalised by this company as an intangible asset, for the 2022 financial year, is:

A) $80 000
B) $90 000
C) $12 500
D) $52 500

Correct Answer:

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