Glass 4 Windows is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2020 expenditure on the project is as follows:

Research	$235 000
Development costs	$500 000

The window is expected to earn revenues of $70 000 per year for the 10 years commencing 1 July 2020. The average expected return from this type of product is 6% per annum. Assuming straight-line amortisation, how much of the research and development cost should be expensed and what amount should be amortised in the year ended 30 June 2020?

		Expensed: $243 348; amortisation: $49 165
		Expensed: $500 000; amortisation: $23 500
		Expensed: $235 000; amortisation: $50 000
		Expensed: $8 348; amortisation: $49 165