Question

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 which 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.

Answer 1

Answer: Research and development general laboratory building which can be put to alternative uses in the future

Step-by-step explanation:

Of all the options that are given in the question, the research and development related costs should be capitalized and amortized over current and future periods has to be the research and development general laboratory building which can be put to alternative uses in the future.

This is a research and development related costs that should be capitalized and amortized over current and future periods as it will still be used in the future unlike other options that will just be utilized for that particular period.