Which of the following statements is not applicable to contract acquisition costs under ASC Topic $606$ guidance for revenue recognition?

Multiple Choice

Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract.

Costs that would be incurred regardless of whether a contract is obtained are not capitalized.

The capitalization requirement is subject to a practical expedient.

Costs must be capitalized even if the amortization period is one year or less.