Last year, a video game publisher expensed 400,000 of development expenditure on a new graphics engine, as the capitalisation criteria were not met. This year, the criteria are met for the first time on 1 April. The project cost 100,000 from January to March, then 350,000 from April to December. Management wishes to reinstate all the project expenditure as an asset. What is the cost of the asset at the year-end?
- Last year's expenditure, expensed
- 400,000
- Expenditure from January to March
- 100,000
- Expenditure from April to December
- 350,000