During the year, Johnson Chemical Ltd spent 7,000,000 Euros in research and development efforts to create a new type of fertilizer that it hoped would lead to a new patent. However, the expected cost of raw materials and distribution convinced management that it was not technically feasible to manufacture and market the chemical. According to IAS 38 (Intangible Assets), how should Johnson record the 7,000,000 Euros in its financial statement?

A) As "Deferred Development Costs" on the Balance Sheet

B) As "Research and Development Expense" on the Income Statement

C) Within Cost of Goods Sold on the Income Statement

D) None of these choices is correct.