Discusubn Queition 2 An entory has incurred the followng expenditure during the current yeart a) $100,000 spent on the design of a new product it is anticipated that this design wul be taken ferward wer the next two wear period to be developed and tested with a view to production in three vearintime, b) 5500,000 spent on the testing of a new production system which has been designed internalty and which will be in operaticn during the foliowng accountine vear. This new systeen should coduce the costs of production by 20 is. Accovire to ias bow stiould each of these costs be treoted in the financial stitementi of the entity? Discusubn Queition 2 An entory has incurred the followng expenditure during the current yeart a) $100,000 spent on the design of a new product it is anticipated that this design wul be taken ferward wer the next two wear period to be developed and tested with a view to production in three vearintime, b) 5500,000 spent on the testing of a new production system which has been designed internalty and which will be in operaticn during the foliowng accountine vear. This new systeen should coduce the costs of production by 20 is. Accovire to ias bow stiould each of these costs be treoted in the financial stitementi of the entity