Ceylan Ltd is currently working on four research and development projects. Summarised data relating to each projects expenditure and recoverable amount is provided below.

Actual

($000) (Budgeted ($000)

Project		2014	2015	2016	2017	2018
North	R&D Expenditure expected revenue inflow	1500 0	500 0	250 1750	0 1750	0 750
South	R&D Expenditure Expected revenue inflow	0 0	1500 0	0 500	0 250	0 250
East	R&D Expenditure expected revenue inflow	75 50	75 50	100 50	100 0	0 0
West	R&D Expenditure expected revenue inflow	200 0	200 0	350 500	0 1250	0 500

All revenue and expenditure predictions are deemed to be probable. A discount rate of 6 per cent is used. The discount rate of 6 percent is 0.9434 for 2015 (year 1), 0.8900 for 2016 (year 2), and for 2017 (year 3) it is 0.8396. In relation to the specific projects, the following information is also available:

Project North

This project involves the development of a new cricket helmet with unique adjustable head band and hand-moulded laminated shell. Initially, Cricketers rejected the concept because they believed it would create pain because of the weight of the helmet and its thermal properties, and sales prospects looked poor. However, in 2015, cricketers changed their minds and large-scale demand for the product was created. Only $250 000 of the expenditure in 2014 was deemed to represent research and the balance of all other expenditure was deemed to be development.

Project South

This project involves the development of a new cricket ball to play day and night test matches. $250 000 has been spent on research and the balance on development. It is expected that only $1 000 000 will be recoverable.

Project East

This project involves the compilation of all known information about the abrasive natures of different types of cricket helmets. The revenue inflows of $50 000 per year are being provided by a major cricket sponsoring company.

Project West

This project relates to the ultimate development of a cricket bat that will allow cricketers to execute shots on any type of a turf more comfortably. Fifty per cent of the expenditure in 2014 was considered to represent research, while the balance of the related expenditures represents development.

Required:

Determine how much research and development expenditure should be deferred under each project as at the end of 2015. Explain and justify your calculations.

(a) Project North.

(b) Project South.

(c) Project East.

(d) Project West.