Accounting · Intangible Assets

Alpha Co is developing a new, highly specialized software for managing quantum computing resources. The project began on 1 January 20X4 with a research phase costing $150,000, which concluded on 30 June 20X4. From 1 July 20X4, the project entered the development phase, incurring costs of $200,000 up to 31 December 20X4. On 1 January 20X5, Alpha Co successfully demonstrated a working prototype, and the project met all the capitalization criteria of IAS 38 from that date. An additional $100,000 in development costs were incurred between 1 January 20X5 and 30 June 20X5. Commercial production and internal use of the software commenced on 1 July 20X5. The software is expected to have a useful life of 5 years. What amount should be recognized as an expense in Alpha Co's statement of profit or loss for the year ended 31 December 20X5?