The following costs have been incurred in respect of the patent in the current financial year. Research salaries R250 000 Development salaries R450 000 Initial marketing costs R30 000 Fees to register patent R78 000 Materials used in development R12 000 The development was completed on 1 July 2020. Patents are amortised on a straight‐line basis at 20% per annum with no residual value. Prepare the journal entry to recognise the patent in the financial statements of Khair Ltd on 1 July 2020. Narrations are required as marks will be allocated to these.

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