3 when the drug went into immediate production. The directors became confident of the project’s success on 1 March 2023. The drug is expected to generat
3 when the drug went into immediate production. The directors became confident of the project’s success on 1 March 2023. The drug is expected to generat
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Dempsey Ltd’s year end is 30 September 2023. Dempsey Ltd commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 2023. Expenditure of $40,000 per month was incurred until the project was completed on 30 June 2023 when the drug went into immediate production. The directors became confident of the project’s success on 1 March 2023. The drug is expected to generate benefits for 5 years.
What is the carrying amount of any intangible asset recognised in respect of the project at 30 September 2023 and what is the total amount Dempsey Ltd will charge to profit or loss for the year ended 30 September 2023?
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