Part B. In class, Manry indicated that a portion of the purchase differential may be allocated to something he called "In-Process R&D." Any leftover amount, if not attributable to some other intangible asset, is assumed to be Goodwill. But is In-Process R&D" immediately expensed, or is it capitalized and amortized? (Important: there are tax advantages to immediate expensing.) It is of course possible, however, that he was kidding, and simply made the whole thing up. Was he correct, or not You must answer the question by writing a 2-paragraph memo addressed to me (assume I am your client, and I have described a potentially dangerous estimation/allocation method to you). You must state your answer, and include a cite (copy, paste, and cite actual paragraphs fronm financial accounting pronouncements you find on the FASB.org website) of the specific guidance that supports your position (assuming you can find any). Your answer to this part must be a hardcopy printout of your memo with a hardcopy printout attached of the actual paragraphs from financial accounting pronouncements) [Go to FASB.org/home and click on 'advanced search' near the little window in the upper right hand portion of the home page. Be sure to check the include documents box. Then put some key words in the little window on the page & get ready for some exciting reading. You may have to dig a bit to find the correct cite.] Part B. In class, Manry indicated that a portion of the purchase differential may be allocated to something he called "In-Process R&D." Any leftover amount, if not attributable to some other intangible asset, is assumed to be Goodwill. But is In-Process R&D" immediately expensed, or is it capitalized and amortized? (Important: there are tax advantages to immediate expensing.) It is of course possible, however, that he was kidding, and simply made the whole thing up. Was he correct, or not You must answer the question by writing a 2-paragraph memo addressed to me (assume I am your client, and I have described a potentially dangerous estimation/allocation method to you). You must state your answer, and include a cite (copy, paste, and cite actual paragraphs fronm financial accounting pronouncements you find on the FASB.org website) of the specific guidance that supports your position (assuming you can find any). Your answer to this part must be a hardcopy printout of your memo with a hardcopy printout attached of the actual paragraphs from financial accounting pronouncements) [Go to FASB.org/home and click on 'advanced search' near the little window in the upper right hand portion of the home page. Be sure to check the include documents box. Then put some key words in the little window on the page & get ready for some exciting reading. You may have to dig a bit to find the correct cite.]