Question 4: Top tech is developing a new production process. During 203, it has incurred...
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Question 4: Top tech is developing a new production process. During 203, it has incurred an expenditure of $100,000, of which $20,000 was incurred before 1 May 203 and $80,000 was incurred between 1 May 203 and 31 December 20X3. The entity is able to demonstrate that at 1 May 203, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $90,000 at 31 December 203. During 20X4, additional expenditure of $130,000 has incurred. The project was completed on 30 June 20X4 and is expected to generate economic benefits over 3 years. Required: Show how the above transactions will be recongised in the financial statements for the years ended 31 December 203 and 204
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