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

Question

Quizplus · Accepted Answer

In the case of in-process R&D, the acquiring company cannot increase the amount of goodwill as it is not considered a separate intangible asset. Goodwill is only recognized if the acquired company has identifiable intangible assets that meet the recognition criteria. A, B, and D are all possible treatments for in-process R&D depending on the specific circumstances of the acquisition.

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