Merck Pharmaceutical Company Has Many Scientists Working in Their Labs

question 48

Multiple Choice

Merck Pharmaceutical Company has many scientists working in their labs trying to develop a new drug to treat congestive heart failure.Following U.S.Generally Accepted Accounting Principles,the cost of this research and development must be:

• A)recorded as an intangible asset and not amortized.
• B)recorded as an intangible asset and amortized over 20 years.
• C)recorded as an intangible asset and tested for impairment on a yearly basis.
• D)expensed as incurred.

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Definitions:

Stone Instrument

A tool made of stone, typically used in historical or prehistoric contexts for various purposes, such as cutting, pounding, or as part of a ritual.

Skull

The bony structure forming the head, protecting the brain and supporting the structures of the face.

Functional Behavior

Behavior that is considered pragmatic and adaptive, helping individuals to achieve goals efficiently in their environment.

Abnormality

A deviation from the average or norm that may indicate a pathology or condition requiring attention or treatment.