Question: Below is data from Rahul Pharmaceutical Ltd presented at 30 June 2022: (a) Company has undertaken a research and development project back in 1

Below is data from Rahul Pharmaceutical Ltd presented at 30 June 2022:

Below is data from Rahul Pharmaceutical Ltd presented at 30 June 2022: (a) Company has undertaken a research and development project back in 1 July 2020 and spent in 2022 $50,000 on testing the new drug on rats. At this stage testing results are not known yet and there is no signs of producing the new drug. (b) Rahul Ltd has purchased a patent at a cost of $800 000 in May 2022. This patent allows the production of 200 000 units. There are no other manufacturers who have the necessary knowledge to utilise the patent. (c) Rahul has acquired a franchise-'Syngene' for a cost of $600,000. There is good demand for the franchise in the market. As at 30 June 2022, it is considered that Rahul Ltd would easily be able to sell the franchise in the market for $800 000. Required 1. Determine the accounting treatment for (a), (b), and (c) (6 marks) 2. What is the total expenses in the year ended 30 June 2022 (2 marks) 3. What is the total value of the intangible assets in the year ended 30 June 2022 (2 marks)

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