4 3 pts Mars Co. had 20 million of capitalised development expenditure at cost brought forward at 1st September 2020 in respect of products currently in production and a new project began on the same date. The research stage of the new project lasted until 30th November 2020 and incurred 1 million of costs. From that date the project incurred development costs of 600,000 per month. On 1st April 2021 the directors of Mars Co. became confident that the project would be successful and yield a profit well in excess of costs. The project was still in development on 31st August 2021. Capitalised development expenditure is amortised at 15% per annum using the diminishing balance method. What amount will be charged to profit or loss for the year ended 31st August 2021 in respect of research and development costs? 5,400,000 6,400,000 7,000,000 5,800,000