For the 2019 income statement, Firm X reported research and development expense of $540,000. Which of the following statements must be true? Choose all that apply.

Firm X spent $540,000 in cash to develop new products and improve old products.

If Firm X invested $540,000 in a lab facility that could be used for next years research projects, it would capitalize the entire amount of $540,000 in 2019.

If the tax rate is 30%, research and development expense reduced Firm Xs net income by $378,000 ($540,000 (1-0.30)).

The current amount of $540,000 included amortized research and development costs from prior years that were not previously expensed, because River Hawk incurs such expenses each year.