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Two otherwise identical companies want specialized software. Company A internally develops the software, expensing all of the costs as R&D in year 1. Company B
Two otherwise identical companies want specialized software. Company A internally develops the software, expensing all of the costs as R&D in year 1. Company B purchases the software in year 1, and amortizes the software over the next four years (years 2-5). Select all of the following that are TRUE. At the end of Year 1. Company A has more assets. At the end of year 2, Company B has more assets In year 6, the companies are again identical In year 4, net income is higher for Company B
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