QUESTION 4 Bee Ltd began researching and developing new wireless modems, which they believe there is a market for. The following is a summary of the fair value of the Research and Development costs that Bee Ltd incurred so far: Research costs Development costs R237 500 R725 000 On 2 January 20.18, Bee Ltd sold the in-process research and development to Beetle Ltd at fair value. On this day Beetle Ltd paid Bee Ltd via an electronic fund transfer (EFT). Beetle Ltd incurred the following additional costs after acquiring the project from Bee Ltd. All payments were made as it occurred. 20.18 20.19 R45 000 R56 000 R137 500 20.20 Additional information: 1. All the costs were incurred evenly throughout the year. The financial year-end is 31 December. 2. From January 20.18 until the end of March 20.18 Beetle Ltd conducted interviews and the last nine months of 20.18 was dedicated to development, but Beetle Ltd was not sure if they have the technical ability to finish the product. 3. In 20.19 all the recognition criteria were met to capitalise development costs. 4. Included in the amount for 20.20, is training costs of R36 000 incurred to equip the staff members with the necessary knowledge and skills needed to complete the product. REQUIRED: Prepare journal entry for the acquisition of the in-process research and development on 2 January 20.18. Make use of the template for possible account names that is given in the instruction document. Clearly indicate in your answer if the item is a statement of financial position (SFP) or a statement of profit or loss and other comprehensive income (P/L) general ledger account. Account name Debit and Credit Rand Dr Cr Purchase of in- process research and development project when the project was required