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?

$$305,000$;$$20,000$

$$310,000$;$$0$

$$245,000$;$$105,000$

None of these

$$350,000$;$$0$

$$220,000$;$$105,000$

Clear my selection