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Average Company acquired all of the assets and liabilities of Best Company. Best Company has research and development projects in process, which have not yet

Average Company acquired all of the assets and liabilities of Best Company. Best Company has research and development projects in process, which have not yet been completed. How does Average Company report Bests in-process research and development?

Select one:

a. As a limited life intangible asset, at fair value

b. As an indefinite life intangible asset, at fair value

c. As part of goodwill

d. It is not reported

If an acquired company has in-process R&D projects, the value of the R&D is reported as an acquired intangible asset:

Select one:

a. Only if it already appears on the acquired companys balance sheet

b. Only if it has an alternative future use

c. If the probability of success is greater than 50%

d. At fair value

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