Question
On 1 April 201X Brook established a new research and development unit to acquire scientific knowledge about the use of synthetic chemicals for pain relief.
On 1 April 201X Brook established a new research and development unit to acquire scientific knowledge about the use of synthetic chemicals for pain relief. The following expenses were incurred during the year ended 31 March 201X+1, Purchase of building for $422,000. The building is to be depreciated on a straight line basis at the rate of 4 % per annum on cost Wages and salaries of research staff $2,665,000 Scientific equipment costing $50,000 to be depreciated using a reducing balance rate of 50 % per annum,
The amount of research and development expenditure to be recognised as an expense in the year ended 31 March 201X+1:
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