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1. Apple, Inc. reported research and development expense of $10,045 million on its 2016 income statement. This expense included many types of costs.
Which of the following types of costs would not be included in the $10,045 million?
A. Salaries and wages for R&D personnel
B. Costs of applying for FDA approval
C. Depreciation on equipment used in experiments
D. Supplies and inventory related to R&D activities and new-product sales
E. None of the above
2. For a gain to be afforded preferential treatment, the asset must be
I. a capital asset
II. sold or exchanged
III. held for at least 6 months
I and II
I and III
II and III
I, I and III
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