Watt Pharmaceuticals manufactures several drugs used to treat bacterial infections. The company is currently working on a drug to treat malaria. Which of the following costs should be expensed as Research and development expense? Which of the following costs should be capitalized as an intangible asset? Salaries of biochemists working on the new malaria drug Administrative costs allocated to R&D department Salaries of physicians working on final stage clinical trials for malaria drug Salaries for production staff working on improving general manufacturing processes Depreciation of equipment used in multiple drug trials Purchase of patent for process used exclusively in development of malaria drug $125,000 95,000 85,000 80,000 25,000 20,000

Watt Pharmaceuticals manufactures several drugs used to treat bacterial infections. The company is currently working on a drug to treat malaria. Which of the following costs should be expensed as Research and development expense? Which of the following costs should be capitalized as an intangible asset