During the year to 31 March 2016, a company spent 120,000 on research and 80,000 on development. The development costs meet the criteria for recognition as an intangible asset and are to be amortised over five years on the straight line basis. Their residual value is estimated to be nil. A full year's amortisation charge is made in the year of the expenditure. The total research and development costs recognised as an expense in the year to 31 March 2016 are: 200,000 16,000 136,000 40,000