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QUESTION 3 Eternity Ltd is involved in a significant project to research and develop a new line of motor oil. Details relating to the research
QUESTION 3 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 15/12/20.19 10 000 31/12/20.19 100 000 Research commences Name for product chosen Research phase completed and product identified Technical feasibility and Intention to complete product established Adequate technical, 30/09/20.19 250 000 31/12/20.19 300 000 31/03/20.20 320 000 established Market research indicates that product will generate economic benefits for 4 years Product launched and went on sale 30/06/20.20 400 000 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: What is total amount of research expense in profit or loss for the year ended 31 December 20.19? A. R110 000 B. R660 000 C. R360 000 D. R300 000 E. R250 000
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