Question 7 (1 marks): On 1 April 201X Brook established a new research and development unit to acquire scientific knowledge about the use of synthetic chemicals for pain relief. The following expenses were incurred during the year ended 31 March 201X+1. a) Purchase of building for $400,000. The building is to be depreciated on a straight line basis at the rate of 4 % per annum on cost. b) Wages and salaries of research staff $2,355,000 c) Scientific equipment costing $60,000 to be depreciated using a reducing balance rate of 50% per annum What is the amount of research and development expenditure to be recognised as an expense in the year ended 31 March 201X+1