Merck Pharmaceutical Company has many scientists working in their labs trying to develop

a new drug to treat congestive heart failure. Following U$.$S$.$ Generally Accepted Accounting

Principles, the cost of this research and development must be:

recorded as an intangible asset and not amortized.

expensed as incurred.

recorded as an intangible asset and tested for impairment on a yearly basis.

recorded as an intangible asset and amortized over $20$ years.