PQ16.11

Carson Inc. spent $25,000 to develop a new open office concept expected to improve efficiency. Carson Inc. has patented the concept and plans to implement it in its own office before licensing it out to other companies. No new equipment or other expenditures were incurred. Carson Inc.s CFO, Jim Peltice, reviewed all costs and noted no research amounts. Jim believes that all costs incurred are development costs per IAS 38 Intangible Assets. How should Carson Inc. record the $25,000 redesign cost?