The manufacturer Selko is developing a new control valve. In 20X2, its development expenditure amounts to 40,000 in the first quarter, 55,000 in the second, 62,000 in the third and 48,000 in the fourth. Technical feasibility is demonstrated in April, but the financing needed to complete the project is obtained only on 1 July 20X2; all the other criteria have been demonstrated since the beginning of the year. The project manager wants to capitalise the expenditure from April. Calculate the amount capitalised and the amount recognised as an expense in 20X2.
- First-quarter expenditure
- 40,000
- Second-quarter expenditure
- 55,000
- Third-quarter expenditure
- 62,000
- Fourth-quarter expenditure
- 48,000