The following costs are incurred during the research and development phases of a laser bone scanner

Laboratory research aimed at discovery of new knowledge $600,000

Search for application of new research findings 400,000

Salaries of research staff designing new laser bone scanner 1,200,000

Material, labor and overhead costs of prototype laser scanner 850,000

Costs of testing prototype and design modifications 450,000

Engineering costs incurred to advance the laser scanner to full ?production stage (technological feasibility reached) 700,000

Identify which of these are development phase items and will be immediately expensed under U.S. GAAP and IFRS.

A) $2,200,000 (U.S. GAAP); $3,200,000 (IFRS)
B) $2,200,000 (U.S. GAAP); $1,200,000 (IFRS)
C) $1,000,000 (U.S. GAAP); $1,000,000 (IFRS)
D) $3,200,000 (U.S. GAAP); $3,200,000 (IFRS)