The correct answers are: Salaries of the development engineering team; Depreciation of plant and machinery used to manufacture trolley parts from which the development models were assembled.

The answer assumes that the plant and machinery are used by the company to produce the normal product range. Hence, these are non-current assets. If the plant and machinery is specific to the project then arguably the resulting depreciation charges to the project may be acceptable as part of the development costs.

Market research and advertising costs are examples from IAS 38 that would normally be excluded from research and development.