2) Louie Pharmaceutical is a young small drug company S. McDuck Ltd acquired recently that specializes in research and development. The below events occurred within the current financial year: i) ii) iii) Acquired on January 1, 2020 patent for established successful drug that has a remaining life of 8 years. An expert consultancy firm has estimated the current value of the patent to be $20 million. Louie Ltd has developed and patented a new drug, "Midas", which was approved for medical use on 1 February 2020. The cost of developing the drug was $24 million of which $11.5 million was incurred after date of approval. Based on early assessments its recoverable amount is estimated at $10 million. The directors wish to capitalize the full cost of developing the drug. The company spent $2.5 million sending staff on a specialist training course at the beginning of the current year. The directors noted that though the course was expensive they have seen a marked improvement in production quality, increase in revenue and cost reductions. The directors of Louie Ltd believe these benefits will continue for another 2 years and wish to capitalize the training costs as an intangible asset. iv) Louie Ltd invested $1.8 million into their advertising campaign for their new drug 'Midas'. The advertising agency told them it would I build brand recognition for many years to come. The directors are of the opinion they should capitalize the advertising campaign. The financial controller requires you to make a brief review stating the effects the above events would have on the financial statements for 31 December 2020.