Carmanah Industries Ltd. Is a company in the high-technology industry. Carmanah has been working on developing a new solar panel technology that has an expected useful life of eight years. The technology meets all of the six criteria required in order to capitalize development costs. In 2020, Carmanah incurred the following costs related to research and development:

Rent of facility Salaries of research staff Legal costs to obtain new patent for technology Legal costs of defending new patent in court Materials consumed in manufacture of prototypes Consulting fees paid for general research Indirect costs related to research and development

$ 250,000 290,000 40,000 36,000 13,100 45,200 9,700

Required: a) Calculate the amount that Carmanah would be allowed to capitalize as an intangible asset for 2020, assuming that Carmanah follows IFRS. Assuming all costs were paid in cash record the journal entry. b) Prepare the entry to record amortization at December 31, 2020, assuming a straight-line method of amortization and all fees were incurred at the beginning of the year. c) At what amount should the solar panel technology be reported in the December 31, 2020, statement of financial position?