Which of the following companies (all U.S.companies except for Lego,which is a Danish company)would most likely capitalize the costs of developing a prototype?
A)Lego
B)Southwest Airlines
C)Walmart
D)Cedar Fair

Question

Quizplus · Accepted Answer

Lego is a Danish company.IFRS requires companies to capitalize costs of developing intangible assets,such as prototypes for making new products or tools.
Southwest Airlines,Walmart,and Cedar Fair are U.S.companies.U.S.GAAP generally requires that such development costs be expensed because of the uncertainty of their value.

Which of the Following Companies (All U