Strategic Innovations Company spent $80 million in 20X1 on research and development costs (R&D). Some work was general research seeking basic knowledge about products. Other work was getting several projects started to investigate ways to develop and improve a line of drugs manufactured by the company. Other costs were incurred in the final stages of perfecting new products. How should these costs be accounted for by Strategic Innovations? capitalized as an asset and amortized over the expected useful life of the research charged to expense as incurred capitalized as an asset not subject to amortization. capitalized and expensed against revenue as revenue from the research is realized

Strategic Innovations Company spent $80 million in 201 on research and development costs (R\&D). Some work was general research seeking basic knowledge about products. Other work was getting several projects started to investigate ways to develop and improve a line of drugs manufactured by the company. Other costs were incurred in the final stages of perfecting new products. How should these costs be accounted for by Strategic Innovations? capitalized as an asset and amortized over the expected useful life of the research charged to expense as incurred capitalized as an asset not subject to amortization capitalized and expensed against revenue as revenue from the research is realized