Please solve in IFRS format.

In 2016, assume Vacquero Toys spent 80,000 on research and 120,600 on development of a new rocking horse process. Of the 120,600, 36,000 was incurred prior to technological feasibility (7/1/16) and the rest was incurred afterwards. The new product has an expected life of 10 years, no residual value, and the straight-line method of amortization is used. They capitalized 120,000 as the cost of the patent and record a patents amortization expense of 12,000. Fiscal year end is February. Prepare any journal entries necessary to correct any errors made during 2016. Assume the books have not been closed. Show all the work in the three categories below. Be careful of how much amortization expense can be claimed in 2016.

Should look like:

1)

Date	Account title	Debit	credit
a	Research and development expense
	Patent
	cash
	[being research and development cost incurred]
b	Amortization expense
	Accumulated amortization

2)

Date	Account title	Debit	credit
a	Research and development expense
	Patent
	cash
	[being research and development cost incurred]
b	Amortization expense
	Accumulated amortization

3)

Date	Account title	Debit	credit
a	Research and development expense
	Patent
b	Accumulated amortization
	Amortization expense

In 2016, assume Vacquero Toys spent 80,000 on research and 120,600 on development of a new rocking horse process. Of the 120,600, 36,000 was incurred prior to technological feasibility (7/1/16) and the rest was incurred afterwards. The new product has an expected life of 10 years, no residual value, and the straight-line method of amortization is used. They capitalized 120,000 as the cost of the patent and record a patents amortization expense of 12,000. Fiscal year end is February Prepare any journal entries necessary to correct any errors made during 2016. Assume the books have not been closed. Show all the work in the three categories below. Be careful of how much amortization expense can be claimed in 2016. What was done: (5 points) What should have been done: (5 points) Journal entries to correct: (5 points)