Please answer PART A and PART B, Thanks.

QUESTION TWO (25 marks or 5% out of 25%) You are required to answer all parts (ie. A and B). PART A (20 marks) Beta Drug and Chemical Ltd is undertaking a number of research and development projects, including the following project. Beta has been in the industry for a long time and has a network of suppliers / retailers it can rely on for any new product introduced. Project Interion: 2018: A new organic compound, DTT-phenol, has been discovered and there is a lot of interest in what this new compound can do. Beta spends $200,000 on various costs to synthesise and test what this new compound can offer. 2019: One particular property of this compound that has piqued the interest of Beta is the compound's property to stimulate orchids to grow more robustly, by improving the photosynthesis process in orchids. Hence, Beta has used the compound to develop a new fertiliser for orchids. Tests have shown that the new fertiliser greatly improves the appearance and colouring of orchid flowers. The fertiliser will enable production of premium orchids, which fetches high prices in the flower market. There is significant demand for orchids worldwide and the market is worth at least 1 billion dollars per year. Beta is confident of the techniques it uses to produce the fertiliser and commercial production can start at the beginning of next year. After determining that the fertiliser is ready for production, they have spent $1,000,000 in the process to do some additional testing. 2020: Beta successfully manufactures the new fertiliser and offers the new fertiliser on the market. The response has been very positive from the market. They also incur $500,000 in this year to further improve the fertiliser. REQUIRED: Determine the total amount of research and development costs that should be recognised as an internally generated intangible asset, in accordance with AASB 138, at the end of each year (2018, 2019, and 2020). Discuss and justify your answer in details. PART B (5 marks) Bowe Ltd is a reporting entity and complies with AASB 112 Income Taxes'. Bowe maintains separate accounts for any deferred tax assets or deferred tax liabilities (i.e. does not offset deferred tax assets and deferred tax liabilities). Bowe's accounting records for the year ended 30 June 2020 disclose the following: Revenue $1,200,000 Cost of goods sold 300,000 SG&A expenses 100,000 200,000 50,000 Capital expenditure (not allowed for tax deduction) Deductible temporary difference, 30 June 2020 Taxable temporary difference, 30 June 2020 Deductible temporary difference, 30 June 2019 Taxable temporary difference, 30 June 2019 80,000 50,000 30,000 Tax rate 20% Total tax base of assets 1,000,000 Total tax base of liabilities 800,000 REQUIRED: Calculate deferred tax expense for the year ended 30 June 2020. Your answers must comply with AASB 112 'Income Taxes'. Show all necessary working, explanations and assumptions to support your