Question

Research and development costs should be capitalized when the: Multiple Choice Future benefit is probable and the amount cannot be reasonably estimated. Future benefit is reasonably possible and the amount can be reasonably estimated. None of these answer choices are correct. Future benefit is probable and the amount can be reasonably estimated.

Answer 1

None of these answer choices are correct.

Step-by-step explanation:

The research and development cost is the cost i.e. incurred when it is expensed. As it gives the benefits in the future to the company also the expenditure is not certain that means the company does not know how much the money is spent so it is very difficult to record as an asset

Therefore the none of these would be chosen and the same is to be considered