When one company acquires another company, any acquired "in-process research and development" is recorded as:
A) Finite-life intangible asset.
B) Property, plant, and equipment.
C) Research and development expense.
D) Indefinite-life intangible asset.

Question

Quizplus · Accepted Answer

When one company acquires another company, any acquired "in-process research and development" is recorded as an indefinite-life intangible asset. This is because the development of the acquired in-process technology is not yet complete and the asset has no alternative future use, which means the estimated useful life of the asset cannot be determined.

When One Company Acquires Another Company, Any Acquired "In-Process Research