Solution-Calculate the total amount of expenditure

Calculate the total amount of expenditure

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Reference no: EM133002944

Lincoln Ltd. is involved in the research and development of a new boat calling Sailing Boat. For this research and development activities Lincoln Ltd. has incurred the following expenditure:

A. $92 000 has been spent for obtaining a general understanding of sea Sailing.
B. $32 000 has been spent for investigating understanding the user of Sailing Boat viewpoint and recommendations.
C. $65 000 spent for developing and testing a full prototype of a boat sailing to be called the pioneer Sailing Boat.
The research indicating that there is a large market for sea boat sailing which will generate many millions of dollars in revenue for Lincoln Ltd.

Required

Problem 1. Considering Australian Accounting Standards Determine how the above expenditure would be treated for accounting purposes as research expense or capitalised development.

Problem 2. Calculate the total amount of expenditure.

Reference no: EM133002944

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Calculate the total amount of expenditure

Reference no: EM133002944

Reference no: EM133002944

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