When a Company That Is Performing R&D Activities Is Acquired

question 133

Multiple Choice

When a company that is performing R&D activities is acquired by another company, the acquiring company must allocate a portion of the purchase price to the R&D activities that are purchased, creating an intangible asset called

• A) intangible development.
• B) in-process research and development.
• C) goodwill.
• D) start-up costs.

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Definitions:

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Referring to something in the process of coming into existence or prominence.