Australia Ltd has been involved in a project to develop an engine that runs hydrogen fuel cell electric vehicles. It started the project in March 2023. Between the starting date and 30 June 2023, the end of the reporting period for the company, Australia Ltd spent $900,000 on the project. At 30 June 2023, there was no indication that the project would be commercially feasible, although the company had made significant progress and was sufficiently sure of future success that it was prepared to outlay more funds on the project. After spending a further $350,000 during September and November, the company had built a prototype that appeared to be successful. The prototype was demonstrated to a number of engineering companies in December, and several of these companies expressed interest in the further development of the engine. Convinced that it now had a product that it would be able to sell, Australia Ltd spent a further $200,000 during January adjusting for the problems that the engineering firms had pointed out. On 15 February, Australia Ltd applied for a patent on the engine, incurring legal and administrative costs of $105,000. The patent had an expected useful life of 5 years but was renewable for a further 3 years upon application. Between February and March 2024, Australia Ltd spent an additional amount of $320, 000 on engineering and consulting costs to develop the project such that the engine was at manufacturing stage. This resulted in changes in the overall design of the engine, and costs of $15,000 were incurred to add minor changes to the patent authority. On 1 June 2024, Australia Ltd invited tenders for the manufacture of the engine for commercial sale. Discuss how Australia Ltd should account for these costs. Provide journal entries with an explanation of why these are the appropriate entries