Slapdash Ltd are drawing up their accounts for the first quarter. As at the accounts date they are one week away from the delivery of Phase 1 of a long term project. Delivery is expected to be successful and Slapdash will be able to bill 100,000 for that work only upon completion of Phase 1. They have so far incurred the following costs in the quarter relating to the contract: 1. 12,000 for the regular costs of bidding for the long term contract 2. 50,000 in materials planned for Phase 1. All Phase 1 materials usage is complete, but materials of value 5,000 remain in stock. It is anticipated they can be used in full for Phase 2. 3. 32,000 in labour costs. A further 3,500 is expected to be incurred to complete Phase 1 and a further 8,000 in committed bonuses are due for successful delivery of Phase 1 4. 13,000 in Project Management costs fully billed for Phase 1. What value of costs can be deferred as at the end of the first quarter, assuming that Phase 2 of the project is expected to generate substantial profits? 088,500 93,500 O 100,500 O 105,500