Related to in-process R&D, an acquiring company may not
A) capitalize in-process R&D.
B) treat in-process R&D as an intangible asset.
C) increase the amount of goodwill for in-process R&D.
D) establish a patent for in-process R&D.

Question

Quizplus · Accepted Answer

In-process R&D is typically expensed as it is incurred and not capitalized as goodwill. Goodwill is generally recognized for the excess of the purchase price over the fair value of identifiable net assets acquired, not specifically for in-process R&D.

Related to In-Process R&D, an Acquiring Company May Not