Which of the following is a true statement concerning research and development (R&D) costs? a. All R&D
Question:
Which of the following is a true statement concerning research and development (R&D) costs?
a. All R&D costs, without exception, must be charged to expense when incurred.
b. R&D costs can only be amortized over a life of 40 years or more.
c. Almost any treatment is acceptable for handling R&D costs.
d. Financial statements must disclose total R&D costs charged to expense in the period
A patent infringement suit may be either successful or unsuccessful. Which of the following statements is correct?
a. If the lawsuit is successful, the cost of the lawsuit is expensed.
b. If the lawsuit is unsuccessful, the cost of the lawsuit is recognized as additional amortization expense.
c. If the lawsuit is unsuccessful, the cost of the lawsuit is written-off from the carrying amount of the related patent.
d. If the lawsuit is unsuccessful, the carrying amount of the related patent is amortized over its remaining economic life.