Odin Ltd (Odin) carries out research and development. In the year ended 30 June 2018, Odin incurred total costs in relation to project X of $900,000. These were incurred at the same amount each month up to 30 April 2018, when the project was completed. The product produced by the project went on sale from 31 May 2018. The project had been confirmed as feasible on 1 January 2018, and the product produced by the project was expected to have a useful life of five years. Which is carrying amount of the development expenditure asset as at 30 June 2018? A $354,000 B $870,000 C $360,000 D $0
Odin Ltd (Odin) carries out research and development. In the year ended 30 June 2018, Odin incurred total costs in relation to project X of $900,000. These were incurred at the same amount each month up to 30 April 2018, when the project was completed. The product produced by the project went on sale from 31 May 2018. The project had been confirmed as feasible on 1 January 2018, and the product produced by the project was expected to have a useful life of five years. Which is carrying amount of the development expenditure asset as at 30 June 2018? A $354,000 B $870,000 C $360,000 D $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Odin Ltd (Odin) carries out research and development. In the year ended 30 June 2018, Odin
incurred total costs in relation to project X of $900,000. These were incurred at the same amount
each month up to 30 April 2018, when the project was completed. The product produced by the
project went on sale from 31 May 2018.
The project had been confirmed as feasible on 1 January 2018, and the product produced by the
project was expected to have a useful life of five years.
Which is carrying amount of the development expenditure asset as at 30 June 2018?
A $354,000
B $870,000
C $360,000
D $0
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