52. Which of the following research and development related costs should be capitalized and depreciated over current and future periods?
a. Research and development general laboratory building which can be put to alternative uses in the future
b. Inventory used for a specific research project c. Administrative salaries allocated to research and development
d. Research findings purchased from another company to aid a particular research project currently in process
53. Which of the following principles best describes the current method of accounting for research and development costs?
a. Associating cause and effect b. Systematic and rational allocation c. Income tax minimization d. Immediate recognition as an expense
54. How should research and development costs be accounted for, according to a Financial Accounting Standards Board Statement?
a. Must be capitalized when incurred and then amortized over their estimated useful lives.
b. Must be expensed in the period incurred.