Southern Coatings, Inc. spent $700,000 cash in fiscal 2020 on research and development activities, paying for work done in 2020 by research personnel (chemists and engineers) discovering and developing improvements to some of their products. Under current accounting standards, what will be the effect of this $700,000 expenditure on Southern's 2020 financial statements? a) Assets go down (cash) and assets go up (goodwill). b) Assets go down (cash) and equity goes down (retained earnings). c) Assets go down (cash) and liabilities go down (salaries payable). d) Assets go down (cash) and assets go up (completed R&D asset). e) None of these answers is correct