QUESTION 2 a. List TWO (2) examples of market related intangible assets. (2 marks) b. Hashe Bhd has been involved in developing a new brand of health product to enhance vibrance and immune system. The following research and development expenditure has been incurred: Financial Year ended Stages of R&D 31 December 2018 31 December 2019 31 December 2020 Research stage Development stage 1 Development stage 2 Cost RM 1,000,000 2,000,000 1,930,000 The cost incurred in the year 2018 was aimed to discover a new formula to develop the new product The development stage from 1 January 2019 till 31 December 2019 included market testing and promotion of RM50,000. However, the development cost incurred at this stage could not provide convincing evidence that economic benefits of the project would flow to the company. Further improvement was needed before the product could be accepted by the market. The next development stage was finally completed on 30 June 2020. Details of the costs incurred were: Salaries and wages of the staff involved in the project Materials consumed to conduct clinical testing of the product Rental of special equipment Depreciation on machineries used in the laboratory General and administrative overhead RM 500,000 1,000,000 200,000 120,000 110,000 From 1 January 2020 till 30 June 2020, the project was viewed as successful and the company was expected to commercialise the product by the end of July 2020. Required: i. Explain the accounting treatment of the research and development cost incurred in the period of 2018 and 2019. (5 marks) ii. Prepare the journal entries for the development cost incurred in 2020. (5 marks) C. On 1 January 2015, Tadika Bersinar Bhd acquired an education franchise at the cost of RM100,000 with estimated economic life of 10 years. Tadika Bersinar Bhd adopted revaluation model for subsequent measurement of the intangible assets. On 1 January 2018 and 1 January 2020, the fair values of the education franchise were RM77,000 and RM53,000 respectively. Required: Calculate the surplus or deficit on revaluation of the education franchise on 1 January 2018 and 1 January 2020. (6 marks) (Total: 18 marks)