Jameson Limited Was Involved in a Mining Exploration Business

question 5

Multiple Choice

Jameson Limited was involved in a mining exploration business. It commenced a project to design more efficient opal detecting equipment. The following expenditures occurred during the financial year ended 30 June 2022: researcher's salary $50 000; research consumables $30 000; re-development of the detecting equipment $40 000; final adjustments to the detecting equipment $12 500. The amount to be capitalised by this company as an intangible asset, for the 2022 financial year, is:

• A) $80 000
• B) $90 000
• C) $12 500
• D) $52 500

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Definitions:

Establishing

The process of founding or creating something firmly, such as rules, principles, or relationships, in a definitive manner.

Operant Conditioning

A system of learning where behavior modification is achieved through incentivization or disciplinary measures.

Classical Conditioning

A learning process first described by Ivan Pavlov, in which an organism comes to associate two stimuli, leading to a change in behavior.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors, without direct personal experience.