Makalu Ltd has several intangible assets reported in its draft balance sheet as at $30$ June

$2023$ as below:

Additional information:

Masthead: Within the last two years, Makalu Ltd has spent considerable time and

resources totalling $$600,000$ establishing a very successful national magazine, called

Wonderful Space. Based on current figures, its circulation is expected to steadily increase for

the foreseeable future years, and directors have revalued the masthead to $$1,200,000$ which

is what they estimate they could sell it for in the current economic conditions.

Franchise: the video$-$production franchise that was acquired for $$600,000$ on $1$

January $2023$ and is expected to have a useful life of $5$ years. This is an extremely popular

and is in great demand. From recent several sales of equivalent franchises within the last

week of June $2023,$ the current market price for such a franchise has risen to $$860,000.$

Research and development asset: The research and development asset relates to

a project concerned with a new eye drop product. During the research phase, an expenditure

of $$280,000$ was incurred. The following expenditure was incurred in the development phase:

$$350,000$ salaries of research staff, $$120,000$ salaries of general administrative staff, and

$$65,000$ depreciation on the laboratory equipment specific for this project. The development

costs met the test for capitalisation as required in AASB $138.$ The estimated recoverable

amount of this project for the year ended $30$ June $2023$ is $$720,000.$ Commercial production

of this product is scheduled to commence in December $2023.$