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Suppose M & O Company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over

Suppose M & O Company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense?

Multiple Choice

Full amount in 2026.
Evenly over the period 2022-2026.
Evenly over the period 2021-2025.
Full amount in 2021.

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