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In the current year, Development Associates expended $10,000 for a specialized machine to be used in conjunction with research and development on a 4-year project

In the current year, Development Associates expended $10,000 for a specialized machine to be used in conjunction with research and development on a 4-year project called X-2. The machine will not be useful when the X-2 project is finished. Development Associates should

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A) Allocate the $10,000 cost over the life of the X-2 project.

B) Capitalize the cost of the machine and allocate that cost over the machines useful life.

C) Capitalize the cost of the machine and allocate that cost over the period of the expected economic benefits from the X-2 project.

D) Expense the $10,000 cost in the current year.

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