Kandy’s year end is 31 October 20X7. Kandy commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 20X7. Expenditure of $30,000 per month was incurred until the project was completed on 30 June 20X7 when the drug went into immediate production. The directors became confident of the project's success on 1 April 20X7. The drug has an estimated life span of six years; time apportionment is used by Kandy where applicable.

What amount will Kandy charge to profit or loss for development costs, including any amortisation, for the year ended 31 October 20X7?

a.90,000

b.95,000

c.5,000

d. 100,000

Answer rating: 100% (QA)

Dec322 2621 Answer is highlighted in yellow Solution Answer Explanation b 95000 Development ex... View the full answer