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Redland Bhd spent the following amounts in research and development work for their new production process.
i. RM180,000 to develop a new process (economic viability is not achieved).ii. RM55,000 in legal fees to obtain a patent.iii. RM91,000 to promote the process that was patented.
REQUIRED:
Problem 1: Explain the accounting treatment for each of the above transactions.
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