Why B$?$Consider the following excerpts from the balance sheet and income statement of Kane Plc$.$ Kane Plc$.$ reports

under IFRS.

$*$Amounts spent in researching a new drug, whose technological and commercial feasibility has not yet been

established.

If Kane Plc$.$ had to report under U$.$S$.$ GAAP instead, its income before taxes for fiscal year $2022$ would be:

a$.$ Higher by $300$

b$.$ Lower by $300$

c$.$ Lower by $720$

d$.$ Lower by $500$

e$.$ None of the above

ANSWER: B