Question
Kiwi's year end is 30 September 2014. Kiwi commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 2014.
Kiwi's year end is 30 September 2014. Kiwi commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 2014. Expenditure of $40,000 per month was incurred until the project was completed on 30 June 2014 when the drug went into immediate production. The directors became confident of the project's success on 1 March 2014. The drug has an estimated life span of five years; time apportionment is used by Kiwi where applicable. What amount will Kiwi charge to profit or loss for development costs, including any amortization, for the year ended 30 September 2014?
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