QS 8-18 (Algo) Identifying research and development expenses LO P4 A\&J Company incurred the following expenses related to patented drugs. 1. Indicate costs that are reported as research and development expenses on the income statement 2. Indicate costs that are capitalized and reported in the Patent account on the balance sheet. QS 8-18 (Algo) Identifying research and development expenses LO P4 A\&J Company incurred the following expenses related to patented drugs. 1. Indicate costs that are reported as research and development expenses on the income statement 2. Indicate costs that are capitalized and reported in the Patent account on the balance sheet