Research and development Pharma Labs Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected preliminary figures for the reporting period ended 31 December 2019 are as follows. LO4 Gross profit Profit before income tax Income tax expense Profit for the period Total assets Current Non-current $17 600000 1 700 000 500000 1 200000 7 300 000 1 500 000 The company uses a standard mark-up on cost. Total research and development expenditure for the year amounted to $4700 000. This amount is substantially higher than in previous years and has eroded the profitability of the company. Mr Carnivale, the company's finance director, has asked for your firm's advice on whether it is acceptable accounting practice for the company to carry forward any of this expenditure to a future accounting period Your analysis reveals that the main reason for the significant increase in research and develop ment costs was the introduction of a planned 5-year laboratory program to attempt to find an anti- dote for the common cold. Salaries and identifiable equipment costs associated with this program amounted to $2 350000 for the year ended 31 December 2019. The following additional items were included in research and development costs for the year (a) Costs to test a new tamper-proof dispenser pack for the company's major selling line (20% of sales) of antibiotic capsules-$760 000. The new packs are to be introduced in the 2020 financial year. (b) Experimental costs to convert a line of headache powders to liquid form- $590000. The company hopes to phase out the powder form if the tests to convert to the stronger and better (c) Quality control required by stringent company policy and by law on all items of production for (d) Costs of a time and motion study aimed at improving production efficiency by redesigning handling liquid form prove successful. the year $750000 plant layout of existing equipment- $50000 e) Construction and testing of a new prototype machine for producing hypodermic needles $200000. Testing has been successful to date and is nearing completion. Hypodermic nee- dies accounted for 1% of the company's sales in the current year, but it is expected that the company's market share will increase following introduction of this new machine. Required Respond to Mr Carnivale's question for each item above