Question 2 Latafa purchased an on-going business for a price of OMR 146 000. The agreed valuation of assets and liabilities were as follows: Machineries 11000 Debentures 6300 Tools 14000 Land and Buildings 13300 Capital binds issued 8700 Investments in associates 32000 Bank Loan 5500 Short-term investment 4000 Unpaid Salaries and wages 11000 Motor Vehicle 13900 Inventories 450 Trade Payables 15000 Trade Receivables 15000 Fixed Deposits 8300 (a) Calculate the value of goodwill during the process of acquisition/business combination (10). In 2020, Latafa developed a new product that will be available in the market by 2021. In connection with the development of this product, the following costs were incurred in 2020: . Compensation paid to research consultants OMR 50 000 Research and development cost OMR 150 000 Materials and supplies consumed OMR 36 000 It is anticipated that these costs will be recovered in 2025. (b) What is the amount of research and development cost that Latafa should record in 2021 as an amortization expense (5). (Total of 15 Marks)