Quarza separately acquired a medical sensor project, recorded as development in progress. In 20X1, it pays 40,000 for research work on a new, still theoretical application and 110,000 of development expenditure which, according to the file documented by management, meets all the criteria for recognising an intangible asset arising from development. Record the entries for the year (E1 for research, E2 for development).
- Research work (paid)
- 40,000
- Development meeting the criteria (paid)
- 110,000