A manufacturer is developing a new sensor. On 1 May, it demonstrates for the first time all the capitalisation criteria for the development phase: a successful prototype, financing obtained, intention and ability to market the sensor, documented market outlets and reliable cost tracking. Development expenditure for the year, paid in cash, amounts to 100,000 before that date and 160,000 after it. Record the summary entry for the year.
- Expenditure before 1 May
- 100,000
- Expenditure after 1 May
- 160,000