QUESTION 1 Eternity Ltd is involved in a significant project to research and develop a new line of motor oil. Details relating to the research and development program are as follows: Date Cumulative costs to date Rand 01/10/20.19 Research commences 15/12/20.19 10 000 Name for product chosen 31/12/20.19 100 000 30/09/20.19 250 000 Research phase completed and product identified Technical feasibility and Intention to complete product established Adequate technical, 31/12/20.19 300 000 31/12/20.19 300 000 feasibility and Intention to complete product established Adequate technical, financial resources available to complete product established Market research indicates that product will 31/03/20.20 320 000 generate economic benefits for 4 years 30/06/20.20 400 000 Product launched and went on sale Included in the above are training costs of R20 000 spent during the second quarter of 20.20. These costs are considered to be directly Included in the above are training costs of R20 000 spent during the second quarter of 20.20. These costs are considered to be directly attributed to the research and development process. REQUIRED: Which of the following calculations will be used to calculate the amortisation cost? A. (Depreciable amount / 4 years) x6 / 12 B. (Cost / 4 years) x 6 / 12 C. (Depreciable amount / 4 years) D. (Cost / 4 years) E. (Depreciable amount / 4 years) x 6 / 12