[nihal221297]

Delta Co has capitalised development costs brought forward of $420 000 at 1 jan 20X9. These costs have a remaining useful life of 4 years. During the year ended 31 dec 20X9 the following expenditure has been incurred on project A:
Development costs. $ 65000
Research Costs. $22000

All research and development was completed in July 20X9 on project A Delta Co commenced production during the month. Delta Co applies IAS 38 Intangible Assets guidance on capitalisation of relevent costs. An amortisation period. Of four years is deemed appropriate. Delta Co’s policy is to charge a full year’s amortisation in the year of capitalistion of a project.
What should the total amortisation expense be for the year ended 31 dec 20X9 ?

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