A-One Treatment Ltd is involved in the Research and Development (R&D) of a new Covid vaccine for new born children. There is expected to be a very large market for this vaccine in Australia and for other countries world-wide. Once developed it is expected to generate many millions of dollars in revenue for A-One Treatment Ltd. For this R&D it has incurred the following expenditure: a) $100,000 for obtaining a general understanding of the Covid b) $60,000 was spent on conducting various surveys related to the health of new born children c) $200,000 was used for conducting various tests on the new vaccine d) $500,000 for developing and testing a final product (Covid Vaccine) Required: For each of above expenditure determine clearly how each expenditure will be treated for accounting purpose
A-One Treatment Ltd is involved in the Research and Development (R&D) of a new Covid vaccine for new born children. There is expected to be a very large market for this vaccine in Australia and for other countries world-wide. Once developed it is expected to generate many millions of dollars in revenue for A-One Treatment Ltd. For this R&D it has incurred the following expenditure:
a) $100,000 for obtaining a general understanding of the Covid
b) $60,000 was spent on conducting various surveys related to the health of new born children
c) $200,000 was used for conducting various tests on the new vaccine
d) $500,000 for developing and testing a final product (Covid Vaccine)
Required:
For each of above expenditure determine clearly how each expenditure will be treated for accounting purpose
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