Read the following two situation and choose the correct option from the following: Situation one: Tesla Company is developing a prototype wheel chair for physically challenged patients, the product developed is expected to operate using smart phone. Tesla company is predicting a high demand for the product and probability of generating future economic benefit is high. The cost of developing the prototype is within the permits which is at OMR 8 million and feasible for the company. Situation two: Cipla LLC is conducting a research to develop a medicine to cure lung cancer. the company in its trials is progressing well but the future economic benefits from the research could not be ascertained properly. The company spent around OMR 23 million on the project. The duration of its commercialization is unknown. If the project is a successful then this could be a breakthrough in science and development.

Hopment oject is a successful then this could be The 8 million cost in situation one can be capitalized by tesla company and the cost of 23 million in situation two is also capitalized by Cipla LLC The 8 million cost in situation one is charged to profit and loss by tesla company and the cost of 23 million in situation two is also charged to profit and loss of Cipta uc The 8 million cost in situation one can be capitalized by tesla company and the cost of 23 million in situation two is charged to profit and loss of Cipla The 8 million cost in situation one cannot be capitalized by tesla company and the cost of 23 million in situation two is charged to profit and loss of Cipla uc Questo Thorn