external reporting

Navas 28 April 2020 at 13:49 PM

To comply with SFAS 2, Accounting for Research and Development Costs, expenditures for equipment for research and development
A) May be expensed in the period incurred or capitalized if the probability of future benefits can readily be determined.
B) Must be expensed in the period incurred, unless the costs are for testing a prototype.
C) Must be capitalized in the period incurred and amortized over the estimated life of the asset.
D) Must be expensed in the period incurred, unless the equipment is able to be used for other projects outside R&D.