Prior to the year ended 30 September 20X8 Bob had paid $45,000 to fund a research

project Brand New. Following positive results, it was decided in October 20X8 to spend a

further $150,000 to develop the new product, and commercial production commenced in

October 20X8. The directors expect that the product has a commercial life of five years. The

development expenditure meets the criteria for capitalisation in accordance with IAS 38

Intangible Assets.

What amount should be expensed to profit or loss for the year to 30 September 20X9?

a.$75,000

b.$30,000

c.$39,000

d. $nil