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Entity A is an information technology company listed in Hong Kong. It provides information technology services to different types of customers. To prepare for the
Entity A is an information technology company listed in Hong Kong. It provides information technology services to different types of customers. To prepare for the company development, Entity A planned to spend more expenditures on research and development in the coming year. Entity A carried out a research and development project on 1 July 2022 called Plan X. In the year ended 30 June 2023, Entity A incurred costs in relation to Plan X of $72,720,000. These were incurred at the same amount each month up to April 2023, when Plan X was completed. Plan X had been confirmed as feasible on 1 October 2022. The product produced by Plan X went on sale on 1 June 2023. The product produced by Plan X was expected to have a useful life of 100 years. The end of the reporting period is 30 June. Amortisation is measured monthly. REQUIRED: Measure the carrying amount of the development cost of Plan X on 30 June 2023. ANSWER: The carrying amount of the development cost is $
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