1.Parsons Limited was involved in a highly successful plastics manufacturing business. It commenced a project to design a more efficient extrusion system for its plastic pipes. The following outlays occurred in the year ending 30 June 2015: JanuaryResearch salaries$50,000, FebruaryResearch materials$30,000, Marchre-development of the extrusion plant$400,000, AprilFinal adjustments to the extrusion plant$25,000. The amount to be expensed by this company at the end of the financial year, 30June 15, is:

Select one:

a.$30,000

b.$80,000

c.$505,000.

d.$50,000

2.Andy Ltd acquired a patent for $20,000 on 31 September 2015. The patent is for a period of20 years and it is estimated that its useful life will be 10 years. What journal entry is required on 31 December 2015, the end of Andy Ltd's financial year?

Select one:

a.Dr Amortisation Expense-patent $500, Credit Accumulated Amortisation-patent $500.

b.Dr Amortisation Expense-patent $2,000, Credit Accumulated Amortisation-patent $2,000.

c.Dr Amortisation Expense-patent $1,000, Credit Accumulated Amortisation-patent $1,000.

d.Dr Amortisation Expense-patent $250, Credit Accumulated Amortisation-patent $250.

3.NZ IAS 38Intangibles, requires that an intangible asset with a finite life be amortised across a period of no greater than 20 years.

Select one:

True

False