Tabua Ltd has a Research and Development Unit. During 2014, the unit spent $100,000 conducting surveys and interviews to determine customer preferences. In 2015, it tested three potential products based on the results of the market surveys. The testing cost $125,000 in salaries, $75,000 on materials, $50,000 on travel and $20,000 in overheads. By the end of 2015, Tabua Ltd determined that only one of the products was commercially and technically viable. During 2016, Tabua Ltd spent another $50,000 to ensure the product meets all health, safety and environmental issues before the expected launch in 2017. Diamond Ltd sells electrical items on a credit basis. During 2015, it recorded sales of $300,000. Customers may return products for free repairs, free replacement or full refund during the first 12 months following the sale. Based on past records, the cost of warranties is 5% of sales. In January 2016, the Samoan Rugby Association (SRA) contracted 14 players to join the National Sevens Team. Each player will be paid $50,000 for the year. Through the contract, players agree not to take up any additional employment or represent another country. The SRA will also spend $100,000 on training players and $300,000 sending teams to participate in overseas tournaments. The SRA hopes the contracted players will generate some income through tournament prize money and product endorsements (e.g. when a sponsor pays the SRA to have its name appear on players' jerseys or for a player to advertisement its products). With reference to the definition and recognition criteria provided in the conceptual framework and additional criteria provided in accounting standards: a) Explain how Tabua Ltd should record and classify the expenditure in 2014, 2015 and 2016. b) Explain how Diamond Ltd should account for customer warranties in 2015 and 2016. c) Explain how the SRA should account for the various payments relating to its Sevens Team