Drugs R Us spent $25,000 on research and development to create a new product.The product was successfully developed and launched into the market.How should the research and development costs be treated?
A)The full $25,000 should be capitalized.
B)The research portion of the $25,000 should be capitalized.
C)The research portion of the $25,000 should be expensed.
D)The full $25,000 should be expensed.

Question

Quizplus · Accepted Answer

Research costs are typically expensed as incurred, while development costs may be capitalized if certain criteria are met.

Drugs R Us Spent $25,000 on Research and Development to Create