Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 (SingAI) SingAI Pte Ltd (SingAI) is a software developer and its financial year ends on 31 December. SingAI has an accounting policy to carry
1 (SingAI) SingAI Pte Ltd (SingAI) is a software developer and its financial year ends on 31 December. SingAI has an accounting policy to carry all its non-current assets at cost model. SingAI started a research project on a new software, BTE and incurred a total research cost of $100,000 on 1 January 2023. SingAI capitalised the research cost upon incurrence and amortised it immediately on a straight-line basis over BTE's estimated useful life of five-year with no residual value. Subsequent to the capitalisation of the research cost, SingAI demonstrated its intention, ability and technical feasibility of completing BTE, and has sufficient resources to do so by 24 September 2023. On 1 October 2023, SingAI incurred a development cost of $153,000 on BTE. Upon incurrence of the development cost, SingAI capitalised it as a subsequent cost incurred on BTE and amortised it accordingly with no change in BTE's original useful life and residual value. The completed BTE was available for use in SingAI's operations from 1 January 2024 to 31 December 2028, with no residual value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started