Glass 4 Windows Is Involved in a Research and Development $$\begin{array} { | l | l | } \hline \text { Research } & \$ 235000 \\\hline \text { Development costs } & \$ 350000 \\\hline\end{array}$$

Glass 4 Windows is involved in a research and development project to create a filtering window that removes the need for curtains.For the current year ended 30 June 2011 expenditure on the project is as follows: $$\begin{array} { | l | l | } \hline \text { Research } & \$ 235000 \\\hline \text { Development costs } & \$ 350000 \\\hline\end{array}$$ The window is expected to earn revenues of $70 000 per year for the 10 years commencing 1 July 2011.Assuming straight-line amortisation,how much of the research and development cost should be expensed this period and what amount should be amortised in the year ended 30 June 2014?

A) Expensed in 2011: $58 500; amortisation in 2014: $58 500
B) Expensed in 2011: $235 000; amortisation in 2014: $35 000
C) Expensed in 2011: $235 000; amortisation in 2014: $28 000
D) Expensed in 2011: $350 000; amortisation in 2014: $23 500

Correct Answer:

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