Which of the Following Research and Development Related Costs Should

question 86

Multiple Choice

Which of the following research and development related costs should be capitalized and amortized over current and future periods?

• A) research and development general laboratory building that can be put to alternative uses in the future
• B) inventory used for a specific research project
• C) administrative salaries allocated to research and development
• D) research findings purchased from another company to aid a particular research project currently in process

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Definitions:

Defect In Incorporation

Errors or omissions that occur during the process of forming a corporation, which could affect the entity's legal status.

Corporation By Estoppel

A principle where a business is treated as a corporation for legal purposes, even if it failed to complete formal incorporation processes, due to its actions or representations to third parties.

De Facto Corporation

A business that operates as if it were a legally incorporated company, even though it has not completed the formal incorporation process.

Misappropriates

The act of taking something dishonestly for one's own use, often in violation of trust or ownership.