Finance · Intangible Assets

Merlot Co is working on several projects during the financial year ended 31 December 20X5. The following costs were incurred: Project A: A project to investigate the properties of a new chemical compound. Costs incurred until 31 December 20X5 were $34,000. Project B: A project to develop a new production process. This project met the IAS 38 capitalization criteria on 31 August 20X5. Costs incurred were $78,870 up to 31 August and $27,800 from 1 September to 31 December 20X5. What total amount should be recognized as an expense in Merlot Co's Statement of Profit or Loss for the year ended 31 December 20X5?