is Moving to another question will save this respollie Question 4 4 x Question 4 of 7 3 June 2020 River Cat Lid has started a company to undertake research and development of a new type of Eco River Jet. For this research and development (R & D), it incurred the following expenditure in 8 points Save Ariginer Transaction Payment a Obtaining a general understanding of water flow Amount status dynamics $1 600,000 b. Understanding what local customers expect from a River Paid Jet by Ferry operators $960,000 c. Testing and refining a certain type of River Jet Incurred $2,880 000 ncurred d. Developing and testing a full prototype of the River Jet, to be called the 'River King' $6 080,000 Incurred e. Marketing of the River Jet $3,840,000 Paid It is expected that there is a large market for the Eco River Jet, which will generate millions of dollars in revenue On 1 July 2020, River Cat Lid acquired Cool Jet Lid for cash of $204,500,000. At that date, Cool Jet's net identifiable assets had a fair value of $203,000,000 The fair value of the net identifiable assets of Cool Jet Lid is determined as follows. Customer list $1,750,000 Machinery $50,750,000 Buildings $52,500,000 Land $105,000,000 $210, 000,000 Less: Bank loan $7,000 000 $203,000,000 Net assets At the end of the reporting period of 30 June 2021, River Cat Lid determines that the recoverable amount of the cash-generating unit, which is considered to be Cool Jet Litd, totals $203,500,000, The carrying amount of the net identifiable assets of Cool Jet Lid, which excludes goodwill, has not changed since the acquisition and is $203,000,000. REQUIRED: According to AASB 138 Paragraph 56 how are the expenses incurred in research activities treated in accounting? (1 Mark) Prepare journal entries for each transaction from a to e above, following the requirements under AASB 138 (5 Marks) 1. Calculate the amount for impairment of goodwill as at 30 June 2021 following the requirements under AASB 3 and AASB 136 Please show all your calculations. (1 Mark) Prepare journal entries to record an impairment of goodwill as at 30 June 2021. (1 Mark) 13'C Sunny 12 30 Note: journal narrations are required. |EV EV A LL XO P Q For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), Open Sans.sa... 10 pt BIUS Paragraph