Cromartie Ltd. prepares its financial statements in accordance with International Financial Reporting Standards. During 2021, the company incurred $1,265,000 in research expenses to develop a new product. An additional $776,000 in development expenses were incurred after technological and commercial viability were established and after future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of fiscal year 2021. Sales of the product began in 2020. 

How much of the above expenses would Cromartie spend on its 2021 income statement?

Answer rating: 100% (QA)

SOLUTION According to International Financial Reporting Standards IFRS research expenses are expensed as incurred whereas development expenses are cap... View the full answer