Windos Ltd is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2018 expenditure on the project is as follows:

Research	$235 000
Development	$350 000

Additional Information

The window is expected to earn revenues of $70 000 per year for the 10 years commencing 1 July 2018. Assuming straight-line amortisation, how much of the research and development cost should be expensed this period and what amount should be amortised in the year ended 30 June 2021?

Group of answer choices

Expensed in 2018: $235 000; amortisation in 2021: $28 000

Expensed in 2018: $58 500; amortisation in 2021: $58 500

Expensed in 2018: $235 000; amortisation in 2021: $35 000

None of the given answers.

Expensed in 2018: $350 000; amortisation in 2021: $23 500