Alpha Medical Ltd located in Melbourne is involved in a research and development project to develop a new vaccine for Covid-19 virus in Melbourne. For the current year ended 30 June 2021 expenditure on the project is as follows:

Research $1800,000

Development $2000,000

This vaccine project is expected to return profits of $200,000 per year for the 10 years commencing 1 July 2021. Assuming the company uses a straight-line method amortisation. This company uses a discount rate of 8 per cent.

Required: i. How much research and development cost should be expensed in the year to 30 June 2021?

ii. How much development expenditure should be amortised in the year to 30 June 2022?

iii. Prepare the relevant journal entries for amortization expenditure in year to 30 June 2022.