Q1 For each of the following issues determine whether the item should be a) Capitalised as an intangible b) Expensed to the Statement of Profit or Loss (Income Statement) 1. 200,000 spent on developing a new process that will not bring in new revenue, but will deliver cost savings 2. 800,000 spent on developing a new product. A competitor has already brought a similar product to the market. The directors are uncertain if they will commit any further funds. 3. 500,000 spent on marketing a new product. This has led to increased sales of 1 million 4. 750,000 has been spent on developing a new product. The future benefits have been estimated at 500,000