The Financial year end for True-Max Limited is the 30th of September. On 1 January 2020 True-Max Limited started research into the production of a new pharmaceutical drug and spent $40,000 per month upon until 31 December 2020.The company commenced the development stage of the project to produce the new pharmaceutical drug on 1 January 2021. Expenditure of $90,000 per month was incurred until the project was completed on 30 June 2020 when the drug went into immediate production. The directors became confident of the projects success on 1 March 2020. The drug has an estimated life span of five years; time apportionment is used by True-Max where applicable.

REQUIRED:

i. Calculate the amount Boscobel should charge to the Statement of profit or Loss for the years 2020 and 2021 as it relates to the above project. (6 marks)

ii. Calculate the amount to be recorded on the Statement of Financial Position for the years 2020 and 2021.

PLEASE CAN I GET THE CORRECT ANSWER TO THIS