Parsons Limited Was Involved in a Highly Successful Plastics Manufacturing

Multiple Choice

Parsons Limited was involved in a highly successful plastics manufacturing business. It commenced a project to design a more efficient extrusion system for its plastic pipes. The following outlays occurred: January, research salaries $50 000; February, research materials $30 000; March, re-development of the extrusion plant $400 000; April, final adjustments to the extrusion plant $25 000. The amount to be expensed by this company at the end of the financial year, 30 June, is:

A) $30 000.
B) $50 000.
C) $80 000.
D) $480 000.