1. During 2009, Company A (the Company) began researching and developing a new product. On June 30, 2010, the Company acquired Pills.com, Inc. Additionally, the Company determined the new product and products being developed by Pills.com, Inc. were technologically feasible and developed a business plan, including identifying a ready market for the product and finding a commitment of resources to produce the product for market. The Company has tracked costs as follows:

Cost	Amount
Research costs (January