Question
Entity A carries out research and development on 1 July 2019 called Plan X. In the year ended 30 June 2020, Entity A incurred costs
Entity A carries out research and development on 1 July 2019 called Plan X.
In the year ended 30 June 2020, Entity A incurred costs in relation to Plan X of $504,000. These were incurred at the same amount each month up to 30 April 2020, when Plan X was completed.
Plan X had been confirmed as feasible on 1 January 2020.
The product produced by Plan X went on sale on 1 June 2020.
The product produced by Plan X was expected to have a useful life of 20 years.
Amortisation is measured monthly.
REQUIRED:
Measure the carrying amount of the development cost of Plan X on 30 June 2020.
ANSWER:
The carrying amount is $.
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