2) Larry Co. acquired all the outstanding common stock of Bird Co. in a business combination transaction. One of the identifiable assets recognized on the acquisition date by Larry Co. was in-process R&D. This intangible asset is expected to be used in future research and development activities and has no other alternative use. The controller of Larry Co. does not know how to account for in-process R&D and whether this intangible asset should be amortized or not.

Research and cite a specific paragraph in the Accounting Standard Codification that can help the controller to determine whether in-process R&D should be amortized or not, and what is the correct amortization period, if at all. Unless specifically requested, your response should not cite implementation guidance and illustrations.

FASB ASC - - -