Blanco Chemical Company Spent €15,000,000 in Development Efforts to Create

question 12

Multiple Choice

Blanco Chemical Company spent €15,000,000 in development efforts to create a fertilizer for which it was able to obtain a patent; however, the expected distribution costs make it infeasible to market the chemical in the foreseeable future. According to IAS 38 (Intangible Assets) , how should Blanco Chemical Company record the €15,000,000?

• A) As a "Deferred Development Cost" on the Balance Sheet
• B) As "Fertilizer Revenue" on the Income Statement
• C) As "Development Expense" on the Income Statement
• D) It should only be reported in the notes to the financial statements.

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Definitions:

Bipolar Cells

Bipolar cells are a type of neuron found in the retina, acting as a middle layer that relays signals from photoreceptors to ganglion cells.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision under bright light conditions.

Bipolar Cells

Cells in the retina that act as a relay between photoreceptors and ganglion cells, transferring visual information.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors via bipolar cells and transmit it to the brain through the optic nerve.