Which of the following research and development costs should always be capitalized?
A)costs of intangibles purchased from others
B)costs of materials, equipment, and intangibles with alternative future uses purchased from others
C)costs of equipment with an expected life greater than three years
D)costs of contract services purchased from others

Question

Quizplus · Accepted Answer

Costs of materials, equipment, and intangibles with alternative future uses purchased from others should always be capitalized as they meet the criteria for recognition as an asset - they provide future economic benefits and can be reliably measured. The other options do not always meet the criteria for capitalization.

Which of the Following Research and Development Costs Should Always