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Janson Pharmaceuticals incurred the following costs in 2011 related to a new cancer drug:
The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new drug was patented before the end of the 2011 fiscal year.
Required:
1. Calculate the amount of research and development expense Janson should report in its 2011 income statement related to this project.
2. Repeat requirement 1 assuming that Janson prepares its financial statements according to International Financial Reporting Standards.
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