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Which development related costs should be capitalized

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Reference no: EM132808899

Problem 1: Which of the following research and development related costs should be capitalized and amortized over current and future periods?

a. Labor and material costs incurred in building a prototype model after establishing technological feasibility
b. Costs of testing equipment that will also be used solely in the current year research and development project
c. Administrative salaries allocated to research and development
d. Research findings purchased from another company to add a particular research project currently in process

Reference no: EM132808899

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